IDEAS home Printed from https://ideas.repec.org/p/aia/lower3/wp11.html

Earnings Mobility and Low-Wage Employment in Spain: The Role of Job Mobility and Contractual Arrangements

Author

Listed:
  • Maite Blázquez Cuesta

    (Dpto de Análisis Económico: Teoría Económica e Historia Económica , Universidad Autónoma de Madrid)

Abstract

The aim of this paper can be summarized as follows. First, I analyze the dynamic nature of the relationship between earnings mobility, job mobility and changes in the contractual arrangements. Second I focus on the evolution of earnings mobility over time. And finally, I concentrate on lowwage employment and the opportunities of getting a better paid job for those workers at the bottom of the earnings distribution. For these purposes, I use the European Community Household Panel Survey (ECHP, 1995-2001), from which a sample of Spanish workers aged 16-65 years old has been drawn. Results show that overall job mobility contributes to increase earnings mobility. Movement into permanent employment status is associated with earnings upgrading overall. For males changes into temporary employment tend to be more strongly related with downgrading only when individuals remain with their current employer. The same is observed for females. However, for females, switching into temporary employment and changing employer at the same time tend to lead to either earnings upgrading or downgrading. Overall, earnings mobility remains mostly unchanged over time, although clear differences, both in terms of levels and trends, can be perceived among different types of workers. Finally I find evidence that switching into permanent employment, either with the current employer or with a change of employer, significantly increases the likelihood of getting a better paid job for those workers located at the bottom of the earnings distribution.

Suggested Citation

  • Maite Blázquez Cuesta, 2006. "Earnings Mobility and Low-Wage Employment in Spain: The Role of Job Mobility and Contractual Arrangements," LoWER Working Papers wp11, AIAS, Amsterdam Institute for Advanced Labour Studies.
    • Handle: RePEc:aia:lower3:wp11
    as

    Download full text from publisher

    File URL: https://www1.feb.uva.nl/aias/L-WP11-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olga Cant⊙, 2000. "Income Mobility In Spain: How Much Is There?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 85-102, March.
    2. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-482, June.
    3. Garcia-Serrano, Carlos & A. Davia, Maria & M. Arranz, Jose, 2005. "Labour market transitions and wage dynamics in Europe," ISER Working Paper Series 2005-17, Institute for Social and Economic Research.
    4. Parsons, Donald O, 1972. "Specific Human Capital: An Application to Quit Rates and Layoff Rates," Journal of Political Economy, University of Chicago Press, vol. 80(6), pages 1120-1143, Nov.-Dec..
    5. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    6. Stephen Bazen & Mary Gregory & Wiemer Salverda (ed.), 1998. "Low-Wage Employment in Europe," Books, Edward Elgar Publishing, number 1612.
    7. Samuel Bentolila & Juan J. Dolado, 1994. "Labour Flexibility and Wages: Lessons from Spain," Working Papers wp1994_9406, CEMFI.
    8. Loprest, Pamela J, 1992. "Gender Differences in Wage Growth and Job Mobility," American Economic Review, American Economic Association, vol. 82(2), pages 526-532, May.
    9. A. Davia, Maria, 2005. "Job mobility and wage mobility at the beginning of the working career: a comparative view across Europe," ISER Working Paper Series 2005-03, Institute for Social and Economic Research.
    10. repec:bla:revinw:v:44:y:1998:i:4:p:535-54 is not listed on IDEAS
    11. Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc.
    12. A. Bigard & Y. Guillotin & C. Lucifora, 1998. "Earnings Mobility: An International Comparison Of Italy And France," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 535-554, December.
    13. Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, vol. 12(4), pages 531-555, August.
    14. Antel, John J, 1986. "Human Capital Investment Specialization and the Wage Effects of Voluntary Labor Mobility," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 477-483, August.
    15. Rita Asplund & Peter Sloane & Ioannis Theodossiou (ed.), 1998. "Low Pay and Earnings Mobility in Europe," Books, Edward Elgar Publishing, number 1533.
    16. Juan F. Jimeno & Luis Toharia, 1993. "The effects of fixed-term employment on wages: theory and evidence from Spain," Investigaciones Economicas, Fundación SEPI, vol. 17(3), pages 475-494, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francisco Silva & José Vieira & António Pimenta & João Teixeira, 2018. "Duration of low-wage employment: a study based on a survival model," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(2), pages 286-299, February.
    2. May Gadallah, 2011. "Factors of Career Mobility in Egypt by Gender," Working Papers 623, Economic Research Forum, revised 09 Jan 2011.
    3. Muñoz de Bustillo, Rafael & Antón, José-Ignacio, 2007. "Low wage work in high employment growth economy, Spain 1994-2004," MPRA Paper 13847, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Maite Blazquez, 2006. "The Probability of Leaving a Low-Paid Job in Spain: The Importance of Switching into Permanent Employment," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 3, pages 58-86.
    3. Garcia-Serrano, Carlos & A. Davia, Maria & M. Arranz, Jose, 2005. "Labour market transitions and wage dynamics in Europe," ISER Working Paper Series 2005-17, Institute for Social and Economic Research.
    4. repec:eee:labchp:v:3:y:1999:i:pb:p:2373-2437 is not listed on IDEAS
    5. FOUARGE Didier & MUFFELS Ruud & PAVLOPOULOS Dimitris & VERMUNT Jeroen K., 2007. "Who benefits from a job change: The dwarfs or the giants?," IRISS Working Paper Series 2007-16, IRISS at CEPS/INSTEAD.
    6. Kristen Keith & Abagail McWilliams, 1999. "The Returns to Mobility and Job Search by Gender," ILR Review, Cornell University, ILR School, vol. 52(3), pages 460-477, April.
    7. Sami Napari, 2008. "The Early‐career Gender Wage Gap among University Graduates in the Finnish Private Sector," LABOUR, CEIS, vol. 22(4), pages 697-733, December.
    8. Amynah Vanessa Gangji & Robert Plasman, 2007. "The Matthew effect of unemployment: how does it affect wages in Belgium," DULBEA Working Papers 07-19.RS, ULB -- Universite Libre de Bruxelles.
    9. Daniel Parent, 1996. "Survol des contributions théoriques et empiriques liées au capital humain," L'Actualité Economique, Société Canadienne de Science Economique, vol. 72(3), pages 315-356.
    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. Antonio Caparrós Ruiz & Mª. Lucía Navarro Gómez, 2002. "Factors affecting quits and layoffs in Spain," Economic Working Papers at Centro de Estudios Andaluces E2002/16, Centro de Estudios Andaluces.
    12. Miri Endeweld, 2018. "On Job Mobility And Earnings Growth," Israel Economic Review, Bank of Israel, vol. 16(2), pages 37-62.
    13. repec:boi:isrerv:v:16:y:2019:i:2:p:37-62 is not listed on IDEAS
    14. Statt, A.L., 1998. "Great Prospects: Employer Provided Training as a Credible Screening Device," Working Papers Series 9802, University of Stirling, Division of Economics.
    15. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    16. Frederiksen, Anders & Halliday, Timothy J. & Koch, Alexander K., 2010. "What Do We Work For? An Anatomy of Pre- and Post-Tax Earnings Growth," IZA Discussion Papers 5298, Institute of Labor Economics (IZA).
    17. Black, Dan A. & Loewenstein, Mark A., 1997. "Dismissals and match-specific rents," Labour Economics, Elsevier, vol. 4(4), pages 325-340, December.
    18. Bachmann, Ronald & Bauer, Thomas K. & David, Peggy, 2010. "Labour Market Entry Conditions, Wages and Job Mobility," Ruhr Economic Papers 188, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    19. Guell, Maia & Petrongolo, Barbara, 2007. "How binding are legal limits? Transitions from temporary to permanent work in Spain," Labour Economics, Elsevier, vol. 14(2), pages 153-183, April.
    20. Maria Jepsen, 2000. "What do we know about the link between low pay, gender and part-time work?," Transfer: European Review of Labour and Research, , vol. 6(4), pages 673-686, November.
    21. Caparros, A. & Navarro, M.L., 2005. "Factors Affecting Quits and Layoffs in Spanish Labour Market," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(4).
    22. Munasinghe, Lalith & Sigman, Karl, 2004. "A hobo syndrome? Mobility, wages, and job turnover," Labour Economics, Elsevier, vol. 11(2), pages 191-218, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aia:lower3:wp11. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiemer Salverda The email address of this maintainer does not seem to be valid anymore. Please ask Wiemer Salverda to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/aiuvanl.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.