Skilled Labor Job Mobility during the Second Industrial Revolution (original) (raw)
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2015
This paper examines the effects of engineer-oriented and technical experience on job mobility during an era known for its rapid technological innovation and capital advancements: the late nineteenth and early twentieth centuries. We first develop an on-the-job search model to help us understand factors leading to job switching under rigid payment systems. Then, using longitudinal data on British and American naval officer- and engineer-careers, we demonstrate how ceteris paribus earnings-increases through promotions can decrease the probability of job switching. We also show how different forms of technical experience affect probabilities of job switching. Combining both insights and following a Topel and Ward (1992) based empirical framework, we find various rates of return to engineering and technical experience comparable to rates of return found today. To our knowledge these are the earliest historic estimates of returns to any type of technical skill.
Benchmarking Job Mobility and Returns to Technical Skill for an Era with Rapid Innovation
2013
This paper examines the effects of engineer-oriented and/or technical experience on job mobility during an era known for its rapid technological innovation and capital advancements: the late nineteenth and early twentieth century. We exploit longitudinal data of naval officer careers to show how technical experience and status as an engineer strongly affected the probability of job exits during the 1890s and early 1900s. We also show how ceteris paribus increases in the distribution of current earnings decrease the probability of a switch. Combining both insights and following from a Topel and Ward (1992) based framework, we impute that the rate of return to training as an engineer is between fifteen and thirty percent, depending on the decade of analysis. Furthermore, the rate of return for each year of technical experience increases from nearly zero prior to 1890 to nearly three percent per annum between 1890 and 1905. These are the earliest historic estimates of returns to any ty...
Human Capital and Technological Transition: Insights from the U.S. Navy
The Journal of Economic History, 2011
This paper explores the effects of human capital on workers during the latter 19th century by examining the specific case of the U.S. Navy. During this time, naval officers belonged either to a regular or an engineer corps and had tasks assigned for their specialized training and experience. To test the effects of specialized skills on career performance, we compile educational data from original-source Naval Academy records for the graduating classes of 1858 to 1905. We merge these with career data extracted from official Navy registers for the years 1859 to 1907. This compilation comprises one of the longest and earliest longitudinal records of labor market earnings, education and experience of which we are aware. Our results suggest that wage premia for "engineer-skilled" officers rapidly deteriorated over their careers; more traditionally skilled officers were better compensated and promoted more frequently as their careers progressed. This compelled those with engineering skills to leave the service early, contributing to the Navy's failure to keep up with the technological frontier of the time.
2019
We analyze a model of adverse selection in labor markets, where workers vary in match-specific as well as general productivity, and firms can shape the information available to rivals. Competition to recruit workers leads to an information structure that resembles outplacement (lots of information to potential employers on bad matches, little on good matches). This involves considerable adverse selection but no ineffi ciency and acts as a way for workers to effectively pay for effi cient training. One consequence, in line with some empirical findings and in contrast to standard tests for adverse selection, is that wages of those who stay in the firm are on average higher than wages of those who leave.
2 an Empirical Analysis of Career Dynamics and Internal Labor Markets During the Great Depression
2001
This paper uses personnel records for workers employed by the Canadian Pacific Railway (CPR) between 1921 and 1944 to examine the extent to which observed career dynamics are consistent with the predictions of various models of internal labor markets. In addition, the findings provide new insight into how internal labor markets responded to Great Depression. Similar to some previous empirical studies, wages are attached to jobs rather than workers at the CPR. Consistent with theoretical models emphasizing job matching and learning, promotion, demotion, and layoff probabilities decline over the job spell, and while fast-tracking is not present for promotions, it does protect workers from layoffs. Job characteristics play a larger role in explaining promotions. One feature that is not easily explained by many existing theoretical models is the widespread use of demotions by the CPR, even during periods of expansion. The CPR appears to have been a very attractive employer during this p...
Occupational and industrial mobility in the United States
Labour Economics, 2007
Using the Panel Study of Income Dynamics, we investigate occupational and industrial mobility of individuals over the 1969-1980 and 1981-1993 periods in the U.S. We find that workers changed both occupations and industries more frequently in the later period. For example, occupational mobility for men ranged from 15 to 20 percent per year during the first period and from 20 to 25 percent per year over the second. We also find that, for men, occupational and industrial changes are associated with lower earnings, though this effect has lessened somewhat over time, while for women the results are mixed. Our results also indicate that older and less educated workers are less likely to shift occupation or industry, as are better paid men but not better paid women.
How Much Mobility? Careers, Promotions, and Wages
2015
The objective of this paper is to study the determinants of job mobility and the effect of job mobility on wages, considering not only the workers ’ career between firms, but also within firms, using a longitudinal matching employer-employee data set. The results obtained show a negative relationship between tenure and the probability of exit and that the new jobs tend to end early. Moreover, the career advancement within the firm has a negative impact on the probability to exit. Concerning wages, job separations can have a positive impact on wage growth, especially for the younger workers and also for industry changes. This shows that the workers ’ movements between employers and industries are important to enhance their career prospects.
Occupational and Industrial Mobility in the United States 1969–93
2005
Using the Panel Study of Income Dynamics, we investigate occupational and industrial mobility of individuals over the 1969-1980 and 1981-1993 periods in the U.S. We find that workers changed both occupations and industries more frequently in the later period. For example, occupational mobility for men ranged from 15 to 20 percent per year during the first period and from 20 to 25 percent per year over the second. We also find that, for men, occupational and industrial changes are associated with lower earnings, though this effect has lessened somewhat over time, while for women the results are mixed. Our results also indicate that older and less educated workers are less likely to shift occupation or industry, as are better paid men but not better paid women.