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I use data from employers and longitudinal data from former/current recipients covering the period 1997 to early 2004 to analyze the relationship between job skills, job changes, and the evolution of wages. I analyze the effects of job skill requirements on starting wages, on-the-job training opportunities, wage growth prospects, and job turnover. The results show that jobs of different skill requirements differ in their prospects for earnings growth, independent of the workers who fill these jobs. Furthermore, these differences in wage growth opportunities across jobs are important determinants of workers’ quit propensities (explicitly controlling for unobserved worker heterogeneity). The determinants and consequences of job dynamics are investigated. The results using a multiplicity of methods, including the estimation of a multinomial endogenous switching model of wage growth, show that job changes, continuity of work involvement, and the use of cognitive skills are all critical components of the content of work experience that leads to upward mobility. The results underscore the sensitivity of recipients’ job transition patterns to changes in labor market demand conditions.

This paper analyses the effects of both training and overeducation on upward mobility in the internal labour market, the professional market and the “supplementary labour market”. The latter segment can be considered as a broadly defined secondary labour market as it is not restricted to the low‐level unskilled jobs only. This broader definition – also found in initial segmentation theory – allows for the changed character of the secondary labour market in the industrialized countries. As expected, “career training” influences upward mobility positively. However, contrary to the predictions of segmentation theory, particularly in the supplementary labour market career training is a means of gaining promotion to a higher level job. Overeducation also affects upward mobility positively, which indicates that overeducation is to some extent a temporary phenomenon at the individual level. However, this also holds in particular in the supplementary segment of the labour market. The estimation results show that the supplementary labour market is less of a dead end than the segmentation theory predicts and is a more valuable place to get training than has been recognized. The supplementary market probably plays an important role in the transition process between initial education and the labour market. Although workers may be initially overeducated in their first jobs, a supplementary segment job could be an attractive step towards reaching a more suitable position in the labour market.

The purpose of this paper is to examine the dynamics of labour market flows over the business cycle through a vacancy chain model. It provides a direct computation of vacancy chains using micro data, empirically investigates the relationship between chain length and the characteristics of jobs and workers initiating the chain, and finally assesses the wage progression of workers moving along the chain.

The paper draws on a longitudinal matched employer-employee database covering all employees in manufacturing in a large region of Italy. A transparent algorithm for vacancy chain computation is developed and standard econometric techniques are employed to analyze job-to-job transitions within identified chains.

Vacancy chains account on average for more than one-third of total hires, and both the number and the length of chains are clearly pro-cyclical. Chains set in motion by women workers, young, old, blue collars, or employed by small firms tend to be shorter. There is a well-defined wage progression from the tail to the head of the chain, revealing that workers are sorted along chains according to skill and/or bargaining power.

There is a limited possibility of identifying separately individual ability and bargaining power.

The vacancy chain methodology can increase the ability of policy makers to produce detailed maps of the labour market and identify worker profiles associated with poor outcomes and hence deserving special attention.

For the first time, this paper operationalizes the vacancy chain approach on a large scale, at a very high level of detail, and over a long-time span.

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.

Employment law reform enforced in Estonia in mid-2009 provides a good opportunity to examine the outcomes of employment protection legislation (EPL). The purpose of this paper is to evaluate the effects of the reduction in EPL on labour reallocation.

The author exploits the micro-data of the Labour Force Survey to estimate the probabilities of one-year worker flows with probit models, and uses a difference in differences (DID) approach to identify the effects of the EPL reform.

The author finds that the reduction in EPL seems to have increased the probability of transitions out of employment. At the same time, she does not find any significant effect of this reform on the probability of flows into employment. The evaluation also gives evidence of a lowered probability of job-to-job transitions resulting from the reduction in EPL.

In this paper, the DID estimation is conducted by using Lithuanians as the control group for Estonians. However, it should be noted that this approach assumes strong similarities between these countries in order to obtain reliable estimates.

The findings of this paper raise the possibility that the reduction in EPL alone may not have been sufficient for achieving a better reallocation of labour and this is important to consider in the context of further developments in other labour market institutions.

The purpose of this paper is to examine how occupational mobility varies over the business cycle and how selected factors contribute to occupational mobility in different stages of the business cycle.

Using annual micro data from the Estonian Labour Force Survey (2001-2010) and implementing probit models with interaction terms, the paper investigates occupational mobility as a change of occupation in two successive years during recovery, boom and recession periods.

The analysis indicates that occupational mobility is higher during the recovery and boom periods and lower during the recession stage. The demographic characteristics (gender, marital status, knowledge of local language) influence the probability for occupational change during the recovery stage of the business cycle. The position of employees in the occupational hierarchy is significant during the recovery and boom periods. Employees working in the public sector have a lower probability for occupational change compared with private sector employees during the recession. Training has a positive effect on occupational mobility during recession. Tenure reduces the probability of occupational mobility over the whole business cycle.

The paper contributes to the literature by providing new results about the role of different factors of occupational mobility over the business cycle. This is among the few studies addressing the variation in the occupational mobility of employees from the public and private sectors. Interactions between the position of the employees in the occupational hierarchy and the ownership form of their employers and the economic sectors add to the understanding about the mechanism of occupational mobility over the business cycle stages.

The purpose of this paper is to shed knowledge about the relationship between the inter-firm job mobility and the occupational transitions in Spain during the last years. In particular, it is tested whether if the type of job-to-job mobility (voluntary or involuntary) has some influence on the workers careers. The empirical analysis is based on panel data provided by the Living Condition Survey, which is conducted by the Spanish Statistics Institute (INE). The period analysed covers the years between 2005 and 2010 (both inclusive), what allows observing the labour mobility patterns in the recent Spanish economic crisis.

The econometric specification used to analyse occupational mobility corresponds to a random effect panel multinomial logit model. The econometric model is estimated separately for workers that have remained at the same firm and for workers who have changed firms; for the latter group, a dummy variable indicating whether the individual quit or was laid off is included as a regressor.

The results derived from the estimates of the econometric specifications show that individuals who voluntarily leave a firm find the decision has a positive effect on their careers, as their probability of upward occupational mobility is more than 90 per cent higher than for individuals who leave their previous position as a result of having been laid off.

This result is an argument in favour of adopting active labour market policies that help improve information flows in the labour market and allow workers a better understanding of potential job offers from outside firms.

This paper analyses the relationship between inter-firm mobility and occupational transitions that has not yet addressed in the economic literature for Spain.

Using administrative data from the Spanish Social Security Administration, the purpose of this paper is to analyse the nature and stability of job matches starting during the economic boom in 2005 and during the recession in 2009.

The authors compare the individual, job, and firm characteristics in the two samples and estimate a competing risk model distinguishing job-to-job, job-to-unemployment, and other transitions.

The authors find that job-to-job transitions are pro-cyclical, while unemployment transitions are counter-cyclical. Individuals most affected by the economic crisis tend to be young males, living in regions with high unemployment rates, with low qualifications and working in manual occupations (particularly construction), and (especially Spanish speaking) immigrants.

The positive relation between job stability and firm size is stronger during the recession than during the boom.