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The Economic Consequences of Labor Mobility

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  • Christopher J. Ruhm

Abstract

Unlike most previous research on the relative changes in earnings of job stayers and job changers, this study examines the variance in earnings changes rather than simply average changes, men and women rather than only men, and the five-year period following job change rather than only the first year or two. The author finds great variability in earnings changes both within and across race and gender groups. Notably, men gained more from quits and, except in the case of low-wage workers, lost less from layoffs than women. Also, men suffered a much smaller penalty than women for repeated job changes. For all groups, the percentage difference between earnings before and after leaving a job generally persisted for several years.

Suggested Citation

  • Christopher J. Ruhm, 1987. "The Economic Consequences of Labor Mobility," ILR Review, Cornell University, ILR School, vol. 41(1), pages 30-42, October.
    • Handle: RePEc:sae:ilrrev:v:41:y:1987:i:1:p:30-42
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    Cited by:

    1. Herbert Dawid & Michael Neugart, 2023. "Effects of technological change and automation on industry structure and (wage-)inequality: insights from a dynamic task-based model," Journal of Evolutionary Economics, Springer, vol. 33(1), pages 35-63, January.
    2. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
    3. Borghans, Lex & Golsteyn, Bart H.H., 2010. "Job Mobility in Europe, Japan and the U.S," IZA Discussion Papers 5386, Institute of Labor Economics (IZA).
    4. Christian Pfeifer & Stefan Schneck, 2012. "Relative Wage Positions and Quit Behavior: Evidence from Linked Employer-Employee Data," ILR Review, Cornell University, ILR School, vol. 65(1), pages 126-147, January.
    5. Arnaud Lefranc, 2002. "Labor Market Dynamics and Wage Losses of Displaced Workers in France and the United-States," THEMA Working Papers 2002-15, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    6. Ricardo J. Caballero & Mohamad L. Hammour, 2005. "The Cost of Recessions Revisited: A Reverse-Liquidationist View," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(2), pages 313-341.
    7. Burda, Michael C. & Mertens, Antje, 2001. "Estimating wage losses of displaced workers in Germany," Labour Economics, Elsevier, vol. 8(1), pages 15-41, January.
    8. Jaap H. Abbring & Gerard J. van den Berg & Pieter A. Gautier & A. Gijsbert C. van Lomwel & Jan C. van Ours & Christopher J. Ruhm, 1998. "Displaced Workers in the United States and the Netherlands," Tinbergen Institute Discussion Papers 98-084/3, Tinbergen Institute.
    9. Jarosch, Gregor, 2021. "Searching for Job Security and the Consequences of Job Loss," CEPR Discussion Papers 15814, C.E.P.R. Discussion Papers.
    10. Allison Zippay, 1991. "Job-Training and Relocation Experiences Among Displaced Industrial Workers," Evaluation Review, , vol. 15(5), pages 555-570, October.
    11. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-188, January.
    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. Roger White, 2010. "Long-run wage and earnings losses of displaced workers," Applied Economics, Taylor & Francis Journals, vol. 42(14), pages 1845-1856.
    14. Schneider, Lutz, 2007. "Zu alt für einen Wechsel? Zum Zusammenhang von Alter, Lohndifferentialen und betrieblicher Mobilität," IWH Discussion Papers 1/2007, Halle Institute for Economic Research (IWH).
    15. R. Mark Wilson & Carole A. Green, 1990. "Occupation, Occupational Change and Movement within the Income Distribution," Eastern Economic Journal, Eastern Economic Association, vol. 16(3), pages 209-220, Jul-Sep.
    16. Smirnych, Larissa & Woergoetter, Andreas, 2000. "Einkommen, Geschlecht und Arbeitsplatzwechsel in Russland 1998. Earnings, Gender, and Mobility in the RF 1995-1998," Transition Economics Series 15, Institute for Advanced Studies.
    17. Borghans, Lex & Golsteyn, Bart H.H., 2010. "Job Mobility in Europe, Japan and the U.S," IZA Discussion Papers 5386, Institute of Labor Economics (IZA).
    18. Bognanno, Michael L. & Delgado, Lisa, 2005. "Job Displacement Penalties in Japan," IZA Discussion Papers 1650, Institute of Labor Economics (IZA).

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