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Job Mobility and Skill Transferability. Some Evidences from Denmark and a Large Italian Region

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Author Info

  • Rikke Ibsen

    (CCP (Center for Corporate Performance), Aarhus Business School)

  • Elisabetta Trevisan

    (CCP (Center for Corporate Performance), Aarhus Business Schoo and V Ca’ Foscari University of Venice)

  • Niels Westergaard-Nielsen

    (CCP (Center for Corporate Performance), Aarhus Business School)

Abstract

This paper investigates the effect of job mobility and tenure on wage dynamics. In this respect, theory assesses that high job mobility and low tenure are associated to lower wage drop when workers experience a job change. We test this theory first comparing two labour market (i.e. Denmark and a large Italian region, Veneto) characterized by different job mobility and tenure, as a consequence of different level of EPL. Secondly, we perform a within Veneto analysis, comparing the different effects when workers are employed in small rather than big firms. Data drawn from the VWH (Veneto Workers History) and IDA (for Denmark) registered data, from 1987 to 2001, are used. In Denmark job mobility has a positive effect on wage increases, while built up on firm-specific human capital has a negative effect. In Veneto, instead, it appears that long tenure are more rewarding. Some evidences of positive impact of moving from job to job when the barriers are lower come from the analysis of the differences between small and big firms in Veneto.

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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2008_40.

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Length: 22
Date of creation: 2008
Date of revision:
Handle: RePEc:ven:wpaper:2008_40

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References

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  1. Giovanni L. Violante, 2002. "Technological Acceleration, Skill Transferability, And The Rise In Residual Inequality," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 297-338, February.
  2. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
  3. Tor Eriksson & Niels Westergaard-Nielsen, 2007. "Wage and Labor Mobility in Denmark, 1980-2000," NBER Working Papers 13064, National Bureau of Economic Research, Inc.
  4. Carol Corrado & John Haltiwanger & Dan Sichel, 2005. "Measuring Capital in the New Economy," NBER Books, National Bureau of Economic Research, Inc, number corr05-1, June.
  5. Carol Corrado & John Haltiwanger & Daniel Sichel, 2005. "Introduction to "Measuring Capital in the New Economy"," NBER Chapters, in: Measuring Capital in the New Economy, pages 1-10 National Bureau of Economic Research, Inc.
  6. Francesco Caselli, 1999. "Technological Revolutions," American Economic Review, American Economic Association, vol. 89(1), pages 78-102, March.
  7. Abowd, John M. & Haltiwanger, John C. & Lane, Julia & McKinney, Kevin L. & Sandusky, L. Kristin, 2007. "Technology and the Demand for Skill: An Analysis of Within and Between Firm Differences," IZA Discussion Papers 2707, Institute for the Study of Labor (IZA).
  8. Albaek, Karsten & Sorensen, Bent E, 1998. "Worker Flows and Job Flows in Danish Manufacturing, 1980-91," Economic Journal, Royal Economic Society, vol. 108(451), pages 1750-71, November.
  9. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  10. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
  11. Galor, Oded & Moav, Omer, 1998. "Ability Biased Technological Transition, Wage Inequality and Growth," CEPR Discussion Papers 1972, C.E.P.R. Discussion Papers.
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