IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Better LATE? Instrumental Variables Estimation of the Returns to Job Mobility during Transition

  • Frank Siebern
Registered author(s):

    Recent theoretical contributions to the problem of job mobility decisions during the transition from a centrally planned economy to a market economy suggest that individuals self-select into specific forms of job mobility behaviour on the basis of their unobservable characteristics. In this case, standard results from both simple treatment-control comparisons of average income and from OLS regressions of reduced-form earnings equations do generally not identify any causal effect of job mobility on income. This paper addresses the endogeneity problem related to job mobility in a quasi-experimental framework and estimates the returns to (early) job mobility in the Eastern German transition process for the period 1990-96. Identification is based on instrumental variables estimation. Two instruments are suggested that account for some of the variation in the job mobility behaviour throughout transition. They allow further for a natural distinction between forced and voluntary movers on the basis of the local average treatment effect (LATE) interpretation of IV estimates. Estimation results contrast strongly with results from both simple treatment-control comparisons and simple OLS estimation. They suggest negative returns to forced job mobility as opposed to positive returns to voluntary job mobility early in transition, thus stressing the existence of heterogeneous returns to job mobility. Copyright Verein fü Socialpolitik and Blackwell Publishers Ltd 2000.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1468-0475.00017
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Verein für Socialpolitik in its journal German Economic Review.

    Volume (Year): 1 (2000)
    Issue (Month): 3 (08)
    Pages: 335-362

    as
    in new window

    Handle: RePEc:bla:germec:v:1:y:2000:i:3:p:335-362
    Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=1465-6485Email:


    More information through EDIRC

    Order Information: Web: http://www.blackwellpublishing.com/subs.asp?ref=1465-6485

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Barro, R.J., 1988. "Government Spending In A Simple Model Of Endogenous Growth," RCER Working Papers 130, University of Rochester - Center for Economic Research (RCER).
    2. Jan-Egbert Sturm & Gerard H. Kuper & Jakob de Haan,, 1996. "Modelling government investment and economic growth at the macro level: A review," Working Papers 29, Centre for Economic Research, University of Groningen and University of Twente.
    3. Gerlinde Sinn & Hans-Werner Sinn, 1994. "Jumpstart: The Economic Unification of Germany," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691728, June.
    4. Burda, Michael C & Funke, Michael, 1991. "German Trade Unions After Unification: Third Degree Wage Discriminating Monopolists?," CEPR Discussion Papers 573, C.E.P.R. Discussion Papers.
    5. Jaume Ventura & Francesco Caselli, 2000. "A Representative Consumer Theory of Distribution," American Economic Review, American Economic Association, vol. 90(4), pages 909-926, September.
    6. Rudiger Dornbusch & Holger Wolf, 1992. "Economic Transition in Eastern Germany," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 235-272.
    7. G. Duggal, Vijaya & Saltzman, Cynthia & Klein, Lawrence R., 1999. "Infrastructure and productivity: a nonlinear approach," Journal of Econometrics, Elsevier, vol. 92(1), pages 47-74, September.
    8. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
    9. Brunner, Martin & Strulik, Holger, 2002. "Solution of perfect foresight saddlepoint problems: a simple method and applications," Journal of Economic Dynamics and Control, Elsevier, vol. 26(5), pages 737-753, May.
    10. Ono, Y. & Shibata, A., 1990. "Spill-Over Effects Of Supply-Side Changes In A Two-Country Economy With Capital Accumulation," ISER Discussion Paper 0232, Institute of Social and Economic Research, Osaka University.
    11. Hughes Hallett, A J & Ma, Yue, 1993. "East Germany, West Germany, and Their Mezzogiorno Problem: A Parable for European Economic Integration," Economic Journal, Royal Economic Society, vol. 103(417), pages 416-28, March.
    12. Keller, Wolfgang, 2000. "From socialist showcase to Mezzogiorno? Lessons on the role of technical change from East Germany's post-World War II growth performance," Journal of Development Economics, Elsevier, vol. 63(2), pages 485-514, December.
    13. Burda, Michael C & Funke, Michael, 1993. "Eastern Germany: Can't We Be More Optimistic?," CEPR Discussion Papers 863, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bla:germec:v:1:y:2000:i:3:p:335-362. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)

    or (Christopher F. Baum)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.