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Job Mobility and Wage Mobility of High- and Low-paid Workers


  • Dimitris Pavlopoulos
  • Didier Fouarge
  • Ruud Muffels
  • Jeroen K. Vermunt


Studies have shown that voluntary job-to-job changes have a positive effect on wage growth. This paper argues that the impact of a job change on wage mobility depends on the position in the wage distribution. Using panel data from the UK and Germany, we show that a change of employer results into a wage increase only for the low paid workers. Within-firm job changes produce, on the average, moderate wage gains for the low-paid workers in Britain, but have no effect in Germany.

Suggested Citation

  • Dimitris Pavlopoulos & Didier Fouarge & Ruud Muffels & Jeroen K. Vermunt, 2007. "Job Mobility and Wage Mobility of High- and Low-paid Workers," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 47-58.
  • Handle: RePEc:aeq:aeqsjb:v127_y2007_i1_q1_p47-58

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    References listed on IDEAS

    1. Giacomo Corneo, 2005. "Verteilungsarithmetik der rot-grünen Einkommensteuerreform," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(2), pages 299-314.
    2. Stefan Homburg, 2000. "German Tax Reform 2000. Description and Appraisal," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(4), pages 504-513, August.
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    Cited by:

    1. Maite Blázquez, 2009. "Earnings mobility in Spain: the role of job mobility and contractual arrangements," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(3), pages 179-205, September.
    2. Stephani, Jens, 2013. "Does it matter where you work? : employer characteristics and the wage growth of low-wage workers and higher-wage workers," IAB Discussion Paper 201304, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Pimenta, António M. S. & Silva, Francisco J. F. & Vieira, José António Cabral, 2011. "Duration of Low Wage Employment: A Study Based on a Survival Model," IZA Discussion Papers 5972, Institute for the Study of Labor (IZA).

    More about this item

    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


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