Modeling Endogenous Mobility in Wage Determination

We evaluate the bias from endogenous job mobility in fixed-effects estimates of worker- and firm-specific earnings heterogeneity using longitudinally linked employer-employee data from the LEHD infrastructure file system of the U.S. Census Bureau. First, we propose two new residual diagnostic tests of the assumption that mobility is exogenous to unmodeled determinants of earnings. Both tests reject exogenous mobility. We relax the exogenous mobility assumptions by modeling the evolution of the matched data as an evolving bipartite graph using a Bayesian latent class framework. Our results suggest that endogenous mobility biases estimated firm effects toward zero. To assess validity, we match our estimates of the wage components to out-of-sample estimates of revenue per worker. The corrected estimates attribute much more of the variation in revenue per worker to variation in match quality and worker quality than the uncorrected estimates

Student and Worker Mobility under University and Government Competition

We provide a normative analysis of endogenous student and worker mobility in the presence of diverging interests between universities and governments. Student mobility generates a university competition effect which induces them to overinvest in education, whereas worker mobility generates a free-rider effect for governments, who are not willing to subsidize the education of agents who will work abroad. At equilibrium, the free-rider effect always dominates the competition effect, resulting in underinvestment in human capital and overinvestment in research. This inefficiency can be corrected if a transnational transfer for mobile students is implemented. With endogenous income taxation, we show that the strength of fiscal competition increases with human capital production. Consequently, supranational policies aimed at promoting teaching quality reduce tax revenues at the expense of research.student mobility, worker mobility, university competition, government competition

Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions, Divestments and Job Movers

How much do developing countries benefit from foreign investment? We contribute to this question by comparing the employment and wage practices of foreign and domestic firms in Brazil, using detailed matched firm-worker panel data. In order to control for unobserved worker differences, we examine both foreign acquisitions and divestments and worker mobility, including the joint estimation of firm and worker fixed effects. We find that changes in ownership do not tend to affect wages significantly, a result that holds both at the worker- and firm-levels. However, divestments are related to large job cuts, unlike acquisitions. On the other hand, movers from foreign to domestic firms take larger wage cuts than movers from domestic to foreign firms. Moreover, on average, the fixed effects of foreign firms are considerably larger than those of domestic firms, while worker selection effects are relatively small.foreign direct investment; ownership changes; worker mobility

Career, family, and workforce mobility: an interdisciplinary conversation

The purpose of this article is to synthesize conceptual and empirical work from the fields of both sociology and career development to explore how issues of career, family, and workforce mobility are necessarily interrelated. The use of work from sociology and career development demonstrates that the complexities of family solutions to career mobility undo the apparent simplicity of delivering a worker to a new worksite. Although organizations and governments work to develop policies that incentivize mobility, including transport infrastructure, housing, employment conditions, and tax incentives, these will not necessarily address the private concerns and priorities of families. This article argues for an interdisciplinary approach to better understand the intersubjective complexities implicated in the growing phenomenon and expectation of worker mobility and suggests both areas and design strategies for further research

Older Male Workers and Job Mobility in Australia

Extending the working life of older workers has been identified as an important policy goal in the context of an ageing society. However, existing research has highlighted the role of job separation and labour force discouragement for older worker labour force outcomes. In contrast, research of older worker job mobility is scant except that it has been established that older workers have lower job mobility rates than younger workers. This paper addresses this void through an analysis of ABS Labour Mobility Survey data. Findings have important implications for the Federal government's predominantly supply sided policy reforms aimed at older workers.Older male workers, job mobility, Australia

Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions, Divestments and Job Movers

How much do developing countries benefit from foreign investment? We contribute to this question by comparing the employment and wage practices of foreign and domestic firms in Brazil, using detailed matched firm-worker panel data. In order to control for unobserved worker differences, we examine both foreign acquisitions and divestments and worker mobility, including the joint estimation of firm and worker fixed effects. We find that changes in ownership do not tend to affect wages significantly, a result that holds both at the worker- and firm-levels. However, divestments are related to large job cuts, unlike acquisitions. On the other hand, movers from foreign to domestic firms take larger wage cuts than movers from domestic to foreign firms. Moreover, on average, the fixed effects of foreign firms are considerably larger than those of domestic firms, while worker selection effects are relatively small.Foreign Direct Investment, Ownership Changes, Worker Mobility

Modeling Endogenous Mobility in Earnings Determination

We evaluate the bias from endogenous job mobility in fixed-effects estimates of worker- and firm-specific earnings heterogeneity using longitudinally linked employer-employee data from the LEHD infrastructure file system of the U.S. Census Bureau. First, we propose two new residual diagnostic tests of the assumption that mobility is exogenous to unmodeled determinants of earnings. Both tests reject exogenous mobility. We relax the exogenous mobility assumptions by modeling the evolution of the matched data as an evolving bipartite graph using a Bayesian latent class framework. Our results suggest that endogenous mobility biases estimated firm effects toward zero. To assess validity, we match our estimates of the wage components to out-of-sample estimates of revenue per worker. The corrected estimates attribute much more of the variation in revenue per worker to variation in match quality and worker quality than the uncorrected estimates

Occupational Mobility and the Business Cycle

Do workers sort more randomly across different job types when jobs are harder to find? To answer this question, we study the mobility of male workers among three-digit occupations in the matched files of the monthly Current Population Survey over the 1979-2004 period. We clean individual occupational transitions using the algorithm proposed by Moscarini and Thomsson (2008). We then construct a synthetic panel comprising annual birth cohorts, and we examine the respective roles of three potential determinants of career mobility: individual ex ante worker characteristics, both observable and unobservable, labor market prospects, and ex post job matching. We provide strong evidence that high unemployment somewhat offsets the role of individual worker considerations in the choice of changing career. Occupational mobility declines with age, family commitments and education, but when unemployment is high these negative effects are weaker, and reversed for college education. The cross-sectional dispersion of the monthly series of residuals is strongly countercyclical. As predicted by Moscarini (2001)’s frictional Roy model, the sorting of workers across occupations is noisier when unemployment is high. As predicted by job-matching theory, worker mobility has significant residual persistence over time. Finally, younger cohorts, among those in the sample for most of their working lives, exhibit increasingly low unexplained career mobility.occupational mobility, business cycle, synthetic cohorts

Wage mobility, Job mobility and Spatial mobility in the Portuguese economy

This paper intends to analyse to what extent does a worker who, along with a job move undergoes a spatial move, gain a wage increase. For that matter, a sample of Quadros de Pessoal is used with information gathered regarding all the workers that are part of those tables, simultaneously for the years 1997 and 1998 as well as their working places. This information is initially used to carry out a bivariate analysis allowing characterizing the workers that change jobs, those who change working places and those who experience both changes. Afterwards, a wage equation is estimated, namely an Augmented Mincer Equation, taking into account both the hourly wage and the wage, making it possible to verify the influence of spatial mobility (through three levels of mobility, according to the distance between the old and new jobs) on the wage. In fact, the results of these estimations suggest that the longer the distance between the old and the new job, higher wage the moving worker will get. KEYWORDS Wage mobility, job mobility, spatial mobility, Portugal JEL Classification: J31, J61, J62, R23