Wage Risk and the Value of Job Mobility in Early Employment Careers

• 成果类型: Article
• 署名作者: Liu, Kai
• 署名单位: University of Cambridge
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/698898
• 发表日期: 2019
• 页码: 139-185
• 关键词: search model; earnings; consumption; insurance; unemployment; INEQUALITY; DYNAMICS; dispersion; variance

摘要

This paper shows that job mobility is a valuable channel that employed workers use to mitigate bad labor market shocks. I estimate a model of wage dynamics jointly with a dynamic model of employment and job mobility. The key feature of the model is the specification of wage shocks at the worker-firm-match level, for workers can respond to these shocks by changing jobs. I find that, relative to the variance of individual-level shocks, the variance of match-level shocks is large and the consequent value of job mobility is substantial, particularly for workers whose match-specific wages are low.