The model of job search involves both employer matches and career matches and incorporates an asymmetry in the search technology. Workers may change employers without changing careers, but cannot search over possible lines of work while working for one employer. The optimal policy implies a two-stage search strategy in which workers search over types of work first. After finding a good match with a particular line of work, they then concentrate on finding an employer. The patterns of job changes observed in the NLSY provide considerable support for the two-stage search policy implied by the model. Among male workers who are changing jobs, those who have previously changed employers while working in their current career are much less likely to change careers during the current job change. This result holds even among workers with similar levels of career-specific work experience. Further, the link between experience and the complexity of job changes operates almost entirely through the two-stage mechanism identified in the model. Among those who are in the first stage (no previous intra-career moves) there is little relationship between experience and the complexity of job changes.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
6662.
Length: Date of creation: Jul 1998 Date of revision: Handle: RePEc:nbr:nberwo:6662
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Find related papers by JEL classification: J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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Jacob Mincer & Boyan Jovanovic, 1981.
"Labor Mobility and Wages,"
NBER Chapters,
in: Studies in Labor Markets, pages 21-64
National Bureau of Economic Research, Inc.
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