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Estimating the Wage Effects of Job Mobility in Britain

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  • David Campbell

Abstract

Switching from one job to another would appear to be an important part of an individual's experience within the labour market. In Britain, approximately one in three workers are observed changing jobs over a three year period. Models of voluntary job mobility predict that in the long run, switching jobs exerts a positive effect on lifetime earnings. This long run gain, however, may be generated through either shifts in the earnings profile, or changes in its slope. Using data from the British Household Panel Survey, it is found that the total wage gain arising from mobility over a three year period is around 10%. Further analysis suggests that four-tenths of this gain is generated by an upward shift in the earnings profile at the point of job change and the remaining six-tenths due to the movement into a job with a higher rate of on-the-job wage growth.

Suggested Citation

  • David Campbell, 2001. "Estimating the Wage Effects of Job Mobility in Britain," Studies in Economics 0117, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:0117
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    File URL: https://www.kent.ac.uk/economics/repec/0117.pdf
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    References listed on IDEAS

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    Cited by:

    1. Adele Bergin, 2015. "Employer Changes and Wage Changes: Estimation with Measurement Error in a Binary Variable," LABOUR, CEIS, vol. 29(2), pages 194-223, June.
    2. Josse Delfgaauw, 2007. "Where to go? Workers' reasons to quit and intra- vs. interindustry job mobility," Applied Economics, Taylor & Francis Journals, vol. 39(16), pages 2057-2067.
    3. Caparrós Ruiz, Antonio & Navarro Gomez, Mª Lucia & Rueda Narváez, Mario F., 2010. "Rentabilidad salarial de la formación laboral: un análisis con datos de panel /Wage Returns to Training Investments: A Panel Data Analysis," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 483(20á.)-4, Agosto.
    4. Uros Delevic & James Kennell, 2022. "Multinationals And Wages: Evidence From Employer–Employee Data In Serbia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 67(232), pages 49-80, January –.

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    More about this item

    Keywords

    job mobility; wage growth;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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