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The Extent and Cyclicality of Career Changes: Evidence for the UK (first version)

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Abstract

Using quarterly data for the U.K. from 1993 through 2012, we document that in economic downturns a smaller fraction of unemployed workers change their career when starting a new job. Moreover, the proportion of total hires that involves a career change for the worker also drops in recessions. Together with a simultaneous drop in overall turnover, this implies that the number of career changes declines during recessions. These results indicate that recessions are times of subdued reallocation rather than of accelerated and involuntary structural transformation. We back this interpretation up with evidence on who changes careers, which industries and occupations they come from and go to, and at which wage gains.

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  • 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.
  • Handle: RePEc:edn:esedps:246
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    Cited by:

    1. Carlos Carrillo-Tudela & Eric Smith, 2017. "Search Capital," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 23, pages 191-211, January.
    2. Burdett, Ken & Carrillo-Tudela, Carlos & Coles, Melvyn G., 2015. "The Cost of Job Loss," ISER Working Paper Series 2015-12, Institute for Social and Economic Research.
    3. Carrillo-Tudela, Carlos & Hobijn, Bart & Perkowski, Patryk & Visschers, Ludo, 2015. "Majority of hires never report looking for a job," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    4. Bauer, Anja, 2015. "Reallocation patterns across occupations," IAB Discussion Paper 201526, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Giovanni Razzu & Carl Singleton, 2015. "Segregation and Gender Gaps through the UK's Great Recession," Economics & Management Discussion Papers em-dp2015-02, Henley Business School, Reading University.

    More about this item

    Keywords

    labour market turnover; occupational and industry mobility; wage growth;

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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