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The Wage Effects of Voluntary Labor Mobility with and without Intervening Unemployment

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  • John J. Antel

Abstract

This study investigates how an unemployment spell between jobs affects a job-changer's new wages. One hypothesis holds that the search and mobility costs associated with unemployment between jobs are compensated for by increased wage gains resulting from more intensive job search; opposing hypotheses are that unemployed job changers are at a disadvantage because they have fewer job contacts than job changers who move directly from one job to another, or because they are unable to gain new skills or develop good work habits while unemployed. The results of this analysis of 1979–81 data from the National Longitudinal Survey of Young Men support the first hypothesis: an unemployment spell between jobs is associated with wage gains higher than those obtained when the job change was made with no intervening unemployment.

Suggested Citation

  • John J. Antel, 1991. "The Wage Effects of Voluntary Labor Mobility with and without Intervening Unemployment," ILR Review, Cornell University, ILR School, vol. 44(2), pages 299-306, January.
    • Handle: RePEc:sae:ilrrev:v:44:y:1991:i:2:p:299-306
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    Cited by:

    1. Balestra Simone & Backes-Gellner Uschi, 2017. "When a Door Closes, a Window Opens? Long-Term Labor Market Effects of Involuntary Separations," German Economic Review, De Gruyter, vol. 18(1), pages 1-21, February.
    2. Gruetter, Max & Lalive, Rafael, 2009. "The importance of firms in wage determination," Labour Economics, Elsevier, vol. 16(2), pages 149-160, April.
    3. repec:iab:iabjlr:v:52:i:1:p:art.1 is not listed on IDEAS
    4. Wieschke, Johannes, 2018. "Frequency of employer changes and their financial return: gender differences amongst German university graduates," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 52(1), pages .1(1-13).
    5. Jill Fitzpatrick & Julie L. Hotchkiss, 2009. "Job Separation Outcomes Of Welfare Hires: Insight From Linked Personnel And State Administrative Data," Contemporary Economic Policy, Western Economic Association International, vol. 27(2), pages 137-146, April.
    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. Johannes Wieschke, 2018. "Frequency of employer changes and their financial return: gender differences amongst German university graduates," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-13, December.
    8. Eric French & Bhashkar Mazumder & Christopher Taber, 2005. "The changing pattern of wage growth for low skilled workers," Working Paper Series WP-05-24, Federal Reserve Bank of Chicago.
    9. 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.
    10. Maria A. Davia, 2010. "Job Mobility And Wage Growth At The Beginning Of The Professional Career In Spain," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 18(1), pages 5-34, Spring.
    11. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2004. "Wage gains among job changers across the business cycle: insight from state administrative data," FRB Atlanta Working Paper 2004-19, Federal Reserve Bank of Atlanta.

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