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Job Mobility in Market Equilibrium

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  • Glenn M. MacDonald

Abstract

This paper develops a simple stochastic job matching model and uses it to derive a set of testable restrictions on the conditional probability with which a worker will be observed to change jobs over time. The restrictions describe the manner in which this probability varies with observable characteristics—current wage, labour market experience, tenure on current job, and past mobility. Econometric methods are also discussed, and some illustrative calculations provided.

Suggested Citation

  • Glenn M. MacDonald, 1988. "Job Mobility in Market Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(1), pages 153-168.
    • Handle: RePEc:oup:restud:v:55:y:1988:i:1:p:153-168.
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    File URL: http://hdl.handle.net/10.2307/2297535
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    Cited by:

    1. Daniel Ferreira & Radoslawa Nikolowa, 2015. "Misallocation of Talent in Competitive Labor Markets," Working Papers 740, Queen Mary University of London, School of Economics and Finance.
    2. James A Schmitz & Thomas J Holmes, 1992. "Managerial Tenure, Business Age And Small Business Dynamics," Working Papers 92-11, Center for Economic Studies, U.S. Census Bureau.
    3. Tanja Hofmann & Johannes Martin, 2017. "Inter-firm Mobility and the Growth of Compensation Components," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 18(4), pages 399-423, October.
    4. Liliane Bonnal & Denis Fougère, 1990. "Les déterminants individuels de la durée du chômage," Économie et Prévision, Programme National Persée, vol. 96(5), pages 45-82.
    5. Galizzi, Monica & Lang, Kevin, 1998. "Relative Wages, Wage Growth, and Quit Behavior," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 367-391, April.
    6. Xin Jin, 2014. "The Signaling Role of Not Being Promoted: Theory and Evidence," Working Papers 0314, University of South Florida, Department of Economics.
    7. Wang, Ruqu & Weiss, Andrew, 1998. "Probation, layoffs, and wage-tenure profiles: A sorting explanation," Labour Economics, Elsevier, vol. 5(3), pages 359-383, September.
    8. repec:eee:labchp:v:3:y:1999:i:pb:p:2373-2437 is not listed on IDEAS
    9. Jin, Xin, 2014. "The Signaling Role of Note Being Promoted: Theory and Evidence," MPRA Paper 58484, University Library of Munich, Germany.
    10. Daniel Ferreira & Radoslawa Nikolowa, 2015. "Misallocation of Talent in Competitive Labor Markets," Working Papers 740, Queen Mary University of London, School of Economics and Finance.

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