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The Extent and Cyclicality of Career Changes: Evidence for the U.K

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  • Carrillo-Tudela, Carlos

    (University of Essex)

  • Hobijn, Bart

    (Federal Reserve Bank of Chicago)

  • She, Powen

    (University of Essex)

  • Visschers, Ludo

    (University of Edinburgh)

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.

Suggested Citation

  • Carrillo-Tudela, Carlos & Hobijn, Bart & She, Powen & Visschers, Ludo, 2014. "The Extent and Cyclicality of Career Changes: Evidence for the U.K," IZA Discussion Papers 8430, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8430
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    More about this item

    Keywords

    occupational and industry mobility; labour market turnover; wage growth;
    All these keywords.

    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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