8 ISE R W orking Paper Series Returns to Job Mobility: The Role of Observed and Unobserved Factors (original) (raw)
2009
Non-technical summary Earnings pro les of individuals depend not only on the characteristics of workers and their employers, which may be both observable and unobservable, but also on the quality of the match between the two. The quality of the match is determined when the worker enters the rm and while successful matches are likely to continue, unsuccessful ones are likely to result in separations of workers from the rm. Both good and bad matches are at risk of job mobility. Good matches may lead to internal mobility (promotions) while bad matches lead to permanent separations from rms. Typically, analyses of the impact of job mobility on wages focus either on moves within a rm, or between rms, making it di ¢ cult to compare changes in wages associated with each type. Furthermore, although much of the di¤erences in wages are not explained by what we can observe, the nature of most data sets does not allow us to identify the e¤ect of unmeasured factors relating to the worker, the...
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