IDEAS home Printed from https://ideas.repec.org/p/crs/wpaper/2014-12.html
   My bibliography  Save this paper

A Dynamic Analysis of Sectoral Mobility, Worker Mismatc and the Wage-Tenure Profiles

Author

Listed:
  • Stéphane Auray, David Fuller

    () (CREST-ENSAI, ULCO and CIRPEE)

  • Damba lkhagvasuren

    () (Concordia University, CIREQ)

  • Antoine Terracol

    () (Concordia University, CIREQ)

Abstract

A dynamic multi-sector model with net and excess mobility is developed to quantify the determinants of the canonical increasing wage-tenure profile. The model distinguishes between three factors: sector specific skill accumulation, sectoral-level shocks, and dynamic worker sector mismatch shocks. The sector-specific skill premium drives the observed negative correlation between lifetime earnings and mobility. Excess mobility driven by worker-sector mismatch shocks explains nearly 20 percent of the observed wage growth for recent movers. A model featuring only dynamic worker-sector mismatch shocks still captures the salient features of the wage-tenure profile. Sectoral-level shocks have a negligible impact on the wage-tenure profile and excess mobility

Suggested Citation

  • Stéphane Auray, David Fuller & Damba lkhagvasuren & Antoine Terracol, 2014. "A Dynamic Analysis of Sectoral Mobility, Worker Mismatc and the Wage-Tenure Profiles," Working Papers 2014-12, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2014-12
    as

    Download full text from publisher

    File URL: http://crest.science/RePEc/wpstorage/2014-12.pdf
    File Function: Crest working paper version
    Download Restriction: no

    Other versions of this item:

    Citations

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


    Cited by:

    1. Fuller, David L. & Kudlyak, Marianna & Lkhagvasuren, Damba, 2014. "Productivity insurance: The role of unemployment benefits in a multi-sector model," Journal of Economic Dynamics and Control, Elsevier, vol. 47(C), pages 39-53.
    2. Ludo Visschers & Carlos Carrillo-Tudela, 2011. "Unemployment and Endogenous Reallocation over the Business Cycle," 2011 Meeting Papers 1101, Society for Economic Dynamics.
    3. Carrillo-Tudela, Carlos & Hobijn, Bart & She, Powen & Visschers, Ludo, 2016. "The extent and cyclicality of career changes: Evidence for the U.K," European Economic Review, Elsevier, vol. 84(C), pages 18-41.
    4. Carlos Carrillo-Tudela & Bart Hobijn & Powen She & Ludo Visschers, 2014. "The Extent and Cyclicality of Career Changes: Evidence for the UK (first version)," ESE Discussion Papers 246, Edinburgh School of Economics, University of Edinburgh.

    More about this item

    Keywords

    Labor Mobility; Wage Structure; Excess and Net Mobility; Industry-Specific Experience; Dynamic Sectoral Mismatch; Labor Income Shocks; Returns to Tenure;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:crs:wpaper:2014-12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sri Srikandan). General contact details of provider: http://edirc.repec.org/data/crestfr.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.