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Wage Changes in Job Changes

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  • Jacob Mincer

Abstract

This is a study of short and longer-runwage gains observed in moving from one job (firm) to the next. Short-run wage gains are defined as wage changes over the survey year bracketing the move minus the opportunity cost of moving. The latter is measured by waqe growth of a subgroup of stayers whose mobility behavior and other charactristics are the same as of the current period movers. Longer-run wage gains are defined as the difference in wages between two successive jobs at the same tenure levels, net of experience, again net of opnortunity costs. Wage gains of movers are generally positive, except for layoffsof older workers. A large part of the gain is due to the lesser wage growth on the job of movers compared to (all) stayers. This is consistent with below average amounts of on the job training observed for movers compared to all workers. Wage gains of quits exceed those of layoffs, despite similar wage levels and wage growth on the preceding job. Wage gains of older movers are smaller compared to gains of younger movers, both in quits and in layoffs. Differences in search conditions and in the nature of separations help to explain these findings.

Suggested Citation

  • Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:1907
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    References listed on IDEAS

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    1. Ann P. Bartel & George J. Borjas, 1981. "Wage Growth and Job Turnover: An Empirical Analysis," NBER Chapters,in: Studies in Labor Markets, pages 65-90 National Bureau of Economic Research, Inc.
    2. Flinn, Christopher J & Heckman, James J, 1983. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 28-42, January.
    3. Linda Leighton & Jacob Mincer, 1982. "Labor Turnover and Youth Unemployment," NBER Chapters,in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 235-276 National Bureau of Economic Research, Inc.
    4. repec:ucp:bknber:9780226726281 is not listed on IDEAS
    5. Jacob Mincer & Boyan Jovanovic, 1981. "Labor Mobility and Wages," NBER Chapters,in: Studies in Labor Markets, pages 21-64 National Bureau of Economic Research, Inc.
    6. Burdett, Kenneth & Ondrich, Jan I, 1985. "How Changes in Labor Demand Affect Unemployed Workers," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 1-10, January.
    7. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-1266, September.
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