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Evaluating Competing Theories of Worker Mobility

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  • Henry S. Farber

    (Princeton University)

Abstract

In this study I use a sample of over fourteen thousand full-time jobs held by workers in the National Longitudinal Survey of Youth (NLSY) to examine mobility patterns and to evaluate theories of labor mobility (defined as change of employer). In particular, I investigate the following questions: 1. How important is heterogeneity in determining mobility rates for young workers? 2. Can heterogeneity in mobility rates be characterized as fixed differences across workers or as variable with workers changing types over time (either systematically or otherwise)? 3. How important is state dependence in mobility rates? In other works, does mobility vary importantly with how long a worker has held his or her job? 4. Does mobility decline systematically with how long a worker has held his or her job, or are there periods where likelihood of mobility increases? 5. What do the facts discovered about the nature of the relationships between mobility and both heterogeneity and state dependence tell us about what actually causes mobility? Specifically, how important is the accumulation of specific capital, how important is the quality of particular matches between workers and firms, and how important is the underlying variation in the stability of workers?

Suggested Citation

  • Henry S. Farber, 1992. "Evaluating Competing Theories of Worker Mobility," Working Papers 1992-1, Princeton University. Economics Department..
  • Handle: RePEc:pri:econom:1992-1
    as

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    File URL: https://www.bls.gov/osmr/research-papers/1992/pdf/nl920020.pdf
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    References listed on IDEAS

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    1. Rosen, Sherwin, 2007. "Studies in Labor Markets," National Bureau of Economic Research Books, University of Chicago Press, number 9780226726304, June.
    2. repec:ucp:bknber:9780226726281 is not listed on IDEAS
    3. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-176, February.
    4. Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-1260, December.
    5. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70(6), pages 538-538.
    6. Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc.
    7. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290, National Bureau of Economic Research, Inc.
    8. 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 1120-1143, Nov.-Dec..
    9. James J. Heckman, 1981. "Heterogeneity and State Dependence," NBER Chapters, in: Studies in Labor Markets, pages 91-140, National Bureau of Economic Research, Inc.
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    Keywords

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    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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