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Worker Beliefs about Occupational Mobility

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Abstract

We study how employed workers perceive and respond to opportunities for occupational mobility. Using a large-scale survey of 4,500 full-time workers in Germany, linked with administrative employment data, we measure workers’ beliefs about the transferability of their skills, the similarity of alternative occupations to theirs, the benefits— potential earnings—and costs—retraining and licensing requirements—of moving to other occupations. We also capture respondents’ beliefs about exposure of their own and alternative occupations to automation and AI. The results reveal that workers are imperfectly informed about opportunities in other occupations: they systematically underestimate task similarity and wages in alternative occupations while overestimating the need for retraining or licensing. These misperceptions are more severe for bluecollar workers and for workers in commercial and administrative occupations, and are strongly negatively correlated with intentions to seek jobs in other occupations. Randomized information treatments providing data on wages, retraining requirements, and displacement risk meaningfully alter workers’ beliefs and mobility intentions, even nine months after the intervention.

Suggested Citation

  • Pascal Heß & Armando Miano, 2026. "Worker Beliefs about Occupational Mobility," CSEF Working Papers 792, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  • Handle: RePEc:sef:csefwp:792
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    Keywords

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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • 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
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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