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The purpose of this paper is to discuss recent dynamics of the Brazilian labour market, by analysing occupational mobility patterns, specially the transitions between formal and informal labour, and verify the earnings mobility resulting from these transitions, separately by gender.

The changes in the mobility patterns are analysed by performing an estimation of the transition probabilities between different occupational status between 2002 and 2012, using a multinomial logit model and the microdata from the Monthly Employment Survey (PME). The earnings mobility is analysed by using quantile regressions.

The results indicate a high degree of mobility from unemployment to formal employment in the period but suggest the persistence of mobility patterns. Women are better off in the period, but only among individuals with better attributes. The earnings mobility results, for women and men, suggest an increase in valuation of the formal labour relatively to informality (informal salaried employment and self-employment), especially at the bottom of the earnings distribution.

The paper contributes to a better understanding of recent changes in occupational mobility patterns between formal and informal labour and the earnings mobility underlying these patterns, accounting for the differences along the earnings distribution and gender issues. That is, it allows identify which groups of workers benefited more from the formalisation process to infer about trends in formal–informal dynamics over the period and discuss the challenges in conducting policies to promote inclusive and quality employment.

Introduction The literature on earnings change has increasingly suggested that the key processes generating earnings inequality are those operating within the firm. However, there has been little empirical work on these phenomena, largely reflecting data deficiencies. Very few data‐sets on earnings contain information about internal processes and those which do often measure them narrowly. For example, most surveys of labour mobility define it either as movement between firms or as such movement plus major, once‐and‐for‐all changes of work type.

The purpose of this paper is to compare internal and external job mobility (quits and promotions) as separate mechanisms for workers improving earnings and job fit.

The authors sample the core workforce from the British Household Panel Survey, estimating the effects of quits and promotions on two sets of outcomes. The first is subjective; satisfaction with work, pay and hours. The second is objective realities about the job; gross monthly pay and weekly working hours. The authors use linear fixed-effects estimation to control for individual heterogeneity.

Quits and promotions are distinctly different mechanisms for improving earnings and job fit. Quits improve measures of job fit (satisfaction with work, pay and hours) but have little effect on earnings. Internal promotions bring earnings growth but have little effect on job fit. The findings shed light what drives “voluntary” mobility; internal mobility may be driven by higher “reservation wages” and career progression, while external mobility may be driven by job matching and the need to find more appropriate work.

Researchers should treat mobile labour markets with scepticism. The growth of “boundaryless careers” may closer resemble a release valve for poor working conditions in a varied market than a growth in new opportunities for earnings and career progression.

Studies of job mobility overwhelmingly focus on the effects quitting without explicitly comparing this mobility to promotions. This omission gives an incomplete picture of mobility. Bringing promotions back into the discussion, helps to understand why workers commit to internal careers and firm tenure. The paper shows that quits and promotions yield distinctly different outcomes for core workers, despite both mobility types being labelled “voluntary”. Thus, the authors show that inequality in earnings and working conditions is closely tied to access to the “life-chances” of mobility; those who are able to pursue promotion are rewarded objectively; those who quit for a new employer seek a better job fit.

Examining the process of job mobility and its effect on earnings, the authors find that this particular labour market is characterised by a high incidence of specific training, that upward mobility is largely experienced within the same organisation and is mainly of the osmotic type. It is felt that a technique must be devised to measure osmotic mobility accurately.

Most intergenerational mobility studies use data on two generations to estimate the elasticity between son's and father's earnings. The purpose of this paper is to use a data set spanning three generations to estimate additional relationships between a person's earnings and family background yielded by intergenerational mobility models such as Becker-Tomes (1979) model and modified versions of it.

The paper uses data from the 1996 PNAD – a nationally representative household survey in Brazil. The author builds a data set consisting of 5,125 grandfather-father-son triplets by taking advantage of two characteristics of Brazil. First, commonly in Brazil, individuals live with their parents until they marry. Second, individuals tended to quit school and begin working at an early age. As a result, there are many households with adult sons who are not at the very beginning of their working careers. Since the sample is limited to households with adult sons, the author applies Heckman (1979) estimation procedure to address selection bias.

Estimation results contradict some predictions of simple versions of the Becker and Tomes model. The paper proposes a modified version of the Becker and Tomes model that allows for a skipping generation effect, and finds that family background explains 34.9 percent of the variation in earnings among males aged 16-27 in Brazil. If there were no differences in endowments (talent, IQ, health, physical appearance, attitudes toward work, family connections, etc.), the variation in earnings would fall by no less than 26 percent. If it were possible to eliminate differences in investment in human capital, the variation in earnings would fall by at most 21.1 percent.

The paper has two main data limitations. First, the 1996 earnings of the fathers and sons are used as proxies for lifetime earnings although the transitory component of one-year earnings may be quite large, particularly at young ages. Second, in spite of the efforts to deal with the sample selection bias, the paper shows that the intergenerational elasticity in earnings for the sons aged 22-27 is about 14.6 percent lower for the subsample of households with adult sons than for the full sample.

The paper finds evidence supporting the existence of a direct effect of the grandparents on the grandchildren beyond their influence on the parents, and reinforces consideration of this factor in intergenerational mobility studies.

The findings in this paper may suggest a room for improvements in economic outcomes of children in less privileged families through investment in formal education as well as policies that considers other aspects of a person's life. For instance, Bolsa Família – a Brazilian government program that provide cash allowances to poor families conditional on children school attendance – may improve the economic outcomes of poor children by enforcing formal education and by lessening the children hardships at home.

The paper proposes a modified version of the Becker and Tomes model which allows for a skipping generation effect. Under the assumptions of the modified model and in hand with a three-generations data set from Brazil, the paper estimates a lowerbound for the variation in earnings explained by differences in endowments across families, and an upperbound for the variation in earnings explained by differences in human capital.

The work compares across cohorts and different levels of education the early-stage evolution of several labour market outcomes, with the aim of studying whether and to what extent education matters for the level, growth and stability of earnings.

By using a rich longitudinal dataset developed from merging survey and administrative data, this article describes the evolution of the early career – five years following the education completion – in Italy comparing differently educated workers born between 1970 and 1984.

The authors find evidence of an "education premium” during the first five years after education completion in terms of faster school-to-work transition, higher employability and higher earnings; moreover, education is associated with positive, faster and more volatile earnings growth, while for those experiencing a downward trend education does not appear to play any role. However, no clear-cut changes across cohorts in the association between the various outcomes and the level of education emerge, thus signalling that no continuous rise of skill premia in the first phase of the working career across cohorts characterises the Italian economy.

The main originality consists in investigating the early career stage by cohort and by the level of education with a focus on many multi-year individual outcomes. Besides investigating the evolution of aggregate outcomes for differently educated individuals born in different cohorts, the authors also focus on individual earnings dynamics along the five years after the education completion.

The authors analyse how the association between parental background and adult children's earnings changes when net rather than gross children's earnings are considered and disentangle what such changes depend on: differences between pre and after taxes earnings inequality or reranking of individuals along the earnings distribution before and after taxes.

Using data from European Union Statistics on Income and Living Conditions (EU-SILC) 2011, the authors focus on two large European countries, Italy and Poland, with comparable levels of inequality and background-related earnings premia but very different personal income tax (PIT) design and estimate – at both the mean and the deciles of the earnings distribution – the association between parents' characteristics and children's gross and net earnings.

The authors find that in Italy the PIT reduces the magnitude of the association between parental background and adult children's earnings at the top of the distribution, while no effects emerge for Poland, and the reduction is mostly due to a decrease in earnings inequality rather than to a re-ranking of children along the distribution. The findings are confirmed when the authors simulate the introduction of a “quasi flat tax” regime in Italy.

The findings suggest that the higher the tax progressivity, the higher the background-related inequality reduction and the lower the intergenerational association, signalling that the degree of progressivity amongst children may be an effective weapon to reduce intergenerational inequality.

In the literature on intergenerational inequality, the role of taxes is usually overlooked. In this paper, the authors try to fill this gap and enquire how the PIT design affects the association between parental background and adult children's earnings.

This paper investigates the relationship between tenure and earnings using two different approaches utilising a matched employer‐employee sample. In the first approach a two step procedure is adopted where the tenure status is modelled as endogenous and subject to choice decision. In the second approach the effect of tenure on earnings is estimated by a system of simultaneous equations using three stage least squares. The results suggest the tenure is a significant determinant of earnings.

Using three cross‐sectional data sets, the determinants of occupational upgrading over time for mobile workers in the United States are analysed. The model controls for the self‐selection of mobile workers over the course of the business cycle. The results indicate a trend towards greater sexual and racial equality in the outcomes of occupational changes. However, it is suggested that the more able workers have an advantage during periods of economic recession.

The purpose of this paper is to analyze the causality between job mobility status, occupational career and wage growth. First, it will be verified whether the type of job-to-job mobility has some influence on the occupational mobility and, second, whether the type of occupational change has some effect on wage growth for both movers and stayers.

The influence of job-to-job mobility on occupational mobility is explained through a random effect panel multinomial logit model to account for the unobserved individual heterogeneity. Next, the effect of occupational mobility on wage growth for both movers and stayers is obtained after applying Heckman’s two-step procedure that corrects the endogeneity of occupational mobility in a panel data framework.

The main results confirm, first, that inter-firm mobility is a mechanism used by the worker to achieve upward mobility. Second, the accumulation of human capital has a positive influence on promotions for movers and stayers, getting the highest probability of upward occupational mobility for workers with higher education. Moreover, promotion is a suitable mechanism for improving worker’s wages. In particular, the wage gain is between 5 percent for stayers and 9 percent for quitters compared to workers who do not change their occupation.

The main findings of this research would justify the implementation of active labor market policies that increase market transparency and decrease information asymmetries between workers and employers. In this way, the adjustment process between job offer and demand would improve and workers would have more possibilities of ascending on the occupational ladder and getting better-paid jobs.

To the best of the author’s knowledge, this paper is the first study in the economic literature discussing Spain that examines the links between change of firm, occupational mobility and wage dynamics.