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Changing jobs: worker mobility and wages in the UK labour market

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  • Pinjas Albagli
  • Nye Cominetti
  • Rui Costa
  • Andrew Eyles
  • Guglielmo Ventura

Abstract

We study the role of job-to-job transitions in shaping wage dynamics in the United Kingdom. We show that job moves have continued to generate substantial wage gains for movers even during a period of real wage stagnation and declining labour market mobility. Using an econometric model that accounts for worker, firm, and match heterogeneity, we decompose the job mobility premium and find a limited role for worker and firm effects, with most of the return explained by match-specific factors. We also examine the determinants of job mobility and show that much of its recent decline reflects compositional changes in the workforce, particularly ageing and increasing occupational professionalisation. We conclude by discussing the policy challenges of promoting job mobility as a driver of wage growth and more efficient labour market reallocation.

Suggested Citation

  • Pinjas Albagli & Nye Cominetti & Rui Costa & Andrew Eyles & Guglielmo Ventura, 2026. "Changing jobs: worker mobility and wages in the UK labour market," CEP Discussion Papers dp2188, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp2188
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    References listed on IDEAS

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    1. Sarah Louise Jewell & Giovanni Razzu & Carl Singleton, 2020. "Who Works for Whom and the UK Gender Pay Gap," British Journal of Industrial Relations, London School of Economics, vol. 58(1), pages 50-81, March.
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