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

  • Maite Blázquez Cuesta


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

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.

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Paper provided by AIAS, Amsterdam Institute for Advanced Labour Studies in its series LoWER Working Papers with number wp11.

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Date of creation: Apr 2006
Date of revision:
Handle: RePEc:aia:lower3:wp11
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  1. Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc.
  2. repec:ese:iserwp:2005-03 is not listed on IDEAS
  3. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
  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 1120-43, Nov.-Dec..
  5. José Ignacio García Pérez & Yolanda Rebollo Sanz, 2004. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Economic Working Papers at Centro de Estudios Andaluces E2004/70, Centro de Estudios Andaluces.
  6. repec:ese:iserwp:2005-17 is not listed on IDEAS
  7. Canto, Olga, 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.
  8. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  9. Loprest, Pamela J, 1992. "Gender Differences in Wage Growth and Job Mobility," American Economic Review, American Economic Association, vol. 82(2), pages 526-32, May.
  10. Bigard, A & Guillotin, Y & Lucifora, C, 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 535-54, December.
  11. 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 477-83, August.
  12. 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.
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