IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc18/181609.html
   My bibliography  Save this paper

Decomposing the Returns to Regional Mobility

Author

Listed:
  • Fehn, Rebecca
  • Frings, Hanna

Abstract

This paper studies the returns to regional mobility based on a sample of job-to-job transitions in Germany. Additionally, we provide evidence for the selection mechanisms into regional mobility and sorting into firms and matches. Using linked employer-employee data we estimate a wage decomposition including individual, firm and match fixed effects. Our (preliminary) results suggest a wage level increase of 28% for regionally mobile individuals, whereas workers making a job-to-job transition in their local labor market region experience an increase of 24%. Further, workers generally experience a move to higher paying firms, whereas this effect is smallest for regionally mobile workers. In addition, workers find relatively better matches due to the job-to-job transition; with regionally mobile workers benefiting most form this increase in match quality.

Suggested Citation

  • Fehn, Rebecca & Frings, Hanna, 2018. "Decomposing the Returns to Regional Mobility," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181609, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc18:181609
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/181609/1/VfS-2018-pid-13869.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John C. Haltiwanger & Henry R. Hyatt & Lisa B. Kahn & Erika McEntarfer, 2018. "Cyclical Job Ladders by Firm Size and Firm Wage," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(2), pages 52-85, April.
    2. Daniel Fackler & Lisa Rippe, 2017. "Losing Work, Moving Away? Regional Mobility After Job Loss," LABOUR, CEIS, vol. 31(4), pages 457-479, December.
    3. Marcus Hagedorn & Tzuo Hann Law & Iourii Manovskii, 2017. "Identifying Equilibrium Models of Labor Market Sorting," Econometrica, Econometric Society, vol. 85, pages 29-65, January.
    4. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    5. M. J. Andrews & L. Gill & T. Schank & R. Upward, 2008. "High wage workers and low wage firms: negative assortative matching or limited mobility bias?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(3), pages 673-697, June.
    6. Jeffrey J. Yankow, 2003. "Migration, Job Change, and Wage Growth: A New Perspective on the Pecuniary Return to Geographic Mobility," Journal of Regional Science, Wiley Blackwell, vol. 43(3), pages 483-516, August.
    7. Nikolas Mittag, 2015. "A Simple Method to Estimate Large Fixed Effects Models Applied to Wage Determinants and Matching," CERGE-EI Working Papers wp532, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    8. Jinkins, David & Morin, Annaïg, 2018. "Job-to-job transitions, sorting, and wage growth," Labour Economics, Elsevier, vol. 55(C), pages 300-327.
    9. Robert H. Topel & Michael P. Ward, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 439-479.
    10. Marie-Benoît Magrini & Philippe Lemistre, 2013. "Distance--Income Migration Trade-off of Young French Workers: An Analysis per Education Level," Regional Studies, Taylor & Francis Journals, vol. 47(2), pages 282-295, February.
    11. Findeisen, Sebastian & Dauth, Wolfgang & Lindner, Attila, 2015. "What Are The Returns To Regional Mobility? Evidence From Mass Layoffs," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112908, Verein für Socialpolitik / German Economic Association.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2016. "Matching, Sorting and Wages," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 19, pages 63-87, January.
    2. Christopher Taber & Rune Vejlin, 2020. "Estimation of a Roy/Search/Compensating Differential Model of the Labor Market," Econometrica, Econometric Society, vol. 88(3), pages 1031-1069, May.
    3. Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2013. "Mismatch, sorting and wage dynamics," IFS Working Papers W13/16, Institute for Fiscal Studies.
    4. Florian Lehmer & Joachim MOLler, 2008. "Group-specific Effects of Inter-regional Mobility on Earnings - A Microdata Analysis for Germany," Regional Studies, Taylor & Francis Journals, vol. 42(5), pages 657-674.
    5. Lanfang Deng & Hongyi Li & Wei Shi, 2022. "Willingness for different job mobility types and wage expectations: An empirical analysis based on the online resumes," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 135-161, February.
    6. Woodcock Simon D, 2010. "Heterogeneity and Learning in Labor Markets," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-69, September.
    7. repec:hal:spmain:info:hdl:2441/78hlmdbud88hhp5vbdddivv2hu is not listed on IDEAS
    8. Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2016. "Matching, Sorting, and Wages," SciencePo Working papers hal-03392023, HAL.
    9. Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2013. "Mismatch, Sorting and Wages Dynamics," SciencePo Working papers hal-03473908, HAL.
    10. repec:hal:spmain:info:hdl:2441/32h1padvln887b3u0epa07o4ub is not listed on IDEAS
    11. Torres, Sónia & Portugal, Pedro & Addison, John T. & Guimarães, Paulo, 2018. "The sources of wage variation and the direction of assortative matching: Evidence from a three-way high-dimensional fixed effects regression model," Labour Economics, Elsevier, vol. 54(C), pages 47-60.
    12. Reichelt, Malte & Abraham, Martin, 2015. "Occupational and regional mobility as substitutes : a new approach to understanding job changes and wage inequality," IAB-Discussion Paper 201514, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. Kory Kantenga, 2016. "Sorting and Wage Inequality," 2016 Meeting Papers 660, Society for Economic Dynamics.
    14. Forsythe, Eliza, 2023. "Occupational Job Ladders within and between Firms," IZA Discussion Papers 16682, Institute of Labor Economics (IZA).
    15. Woodcock, Simon D., 2015. "Match effects," Research in Economics, Elsevier, vol. 69(1), pages 100-121.
    16. Jaime Arellano-Bover, 2024. "Career Consequences of Firm Heterogeneity for Young Workers: First Job and Firm Size," Journal of Labor Economics, University of Chicago Press, vol. 42(2), pages 549-589.
    17. repec:hal:spmain:info:hdl:2441/6ggbvnr6munghes9od0s108ro is not listed on IDEAS
    18. Torben Sørensen & Rune Vejlin, 2013. "The importance of worker, firm and match effects in the formation of wages," Empirical Economics, Springer, vol. 45(1), pages 435-464, August.
    19. Matthew Bidwell & Forrest Briscoe, 2010. "The Dynamics of Interorganizational Careers," Organization Science, INFORMS, vol. 21(5), pages 1034-1053, October.
    20. Ghosh, Suman, 2007. "Job mobility and careers in firms," Labour Economics, Elsevier, vol. 14(3), pages 603-621, June.
    21. Qian, Nancy & Lagakos, David & Moll, Benjamin & Porzio, Tommaso, 2012. "Experience Matters: Human Capital and Development Accounting," CEPR Discussion Papers 9253, C.E.P.R. Discussion Papers.
    22. Sami Napari, 2008. "The Early‐career Gender Wage Gap among University Graduates in the Finnish Private Sector," LABOUR, CEIS, vol. 22(4), pages 697-733, December.
    23. Kunze, Astrid & Troske, Kenneth R., 2012. "Life-cycle patterns in male/female differences in job search," Labour Economics, Elsevier, vol. 19(2), pages 176-185.

    More about this item

    Keywords

    regional mobility; wage growth; job-to-job transitions; firm effects; match effects;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc18:181609. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.