The extent and cyclicality of career changes: Evidence for the U.K.

Carlos Carrillo-Tudela, Bart Hobijn, Powen She, Ludo Visschers

Research output: Contribution to journalArticle

11 Scopus citations

Abstract

Using quarterly data for the U.K. from 1993 through 2012, we document that the extent of worker reallocation across occupations or industries (a career change, in the parlance of this paper) is high and procyclical. This holds true after controlling for workers' previous labour market status and for changes in the composition of who gets hired over the business cycle. Our evidence suggests that a large part of this reallocation reflect excess churning in the labour market. We also find that the majority of career changes come with wage increases. During the economic expansion wage increases were typically larger for those who change careers than for those who do not. During the recession this is not true for career changers who were hired from unemployment. Our evidence suggests that understanding career changes over the business cycle is important for explaining labour market flows and the cyclicality of wage growth.

Original languageEnglish (US)
Pages (from-to)18-41
Number of pages24
JournalEuropean Economic Review
Volume84
DOIs
StatePublished - May 1 2016

Keywords

  • Labour market turnover
  • Occupational and industry mobility
  • Wage growth

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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