TY - JOUR
T1 - The extent and cyclicality of career changes
T2 - Evidence for the U.K.
AU - Carrillo-Tudela, Carlos
AU - Hobijn, Bart
AU - She, Powen
AU - Visschers, Ludo
N1 - Publisher Copyright:
© 2015 Elsevier B.V.
PY - 2016/5/1
Y1 - 2016/5/1
N2 - 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.
AB - 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.
KW - Labour market turnover
KW - Occupational and industry mobility
KW - Wage growth
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U2 - 10.1016/j.euroecorev.2015.09.008
DO - 10.1016/j.euroecorev.2015.09.008
M3 - Article
AN - SCOPUS:84953248525
SN - 0014-2921
VL - 84
SP - 18
EP - 41
JO - European Economic Review
JF - European Economic Review
ER -