scholarly journals What Can We Learn from Idiosyncratic Wage Changes?

2021 ◽  
Vol 2021 (055) ◽  
pp. 1-38
Author(s):  
Cynthia L. Doniger ◽  
Keyword(s):  
Job Search ◽  
Small Proportion ◽  
Search Model ◽  
Labor Share ◽  
Job Transitions ◽  
Wage Contracts

I document six facts about wage changes. First, most pay revisions occur at yearly frequency, but a small proportion occur at idiosyncratic times. Second, idiosyncratic pay changes are larger and more dispersed than year-end pay changes and resemble more pay changes occurring at job-to-job transitions. Third, idiosyncratic pay changes are more common for workers with less experience and, fourth, in firms higher on the job-ladder. Fifth, industries in which the incidence of idiosyncratic raises have risen have experienced greater declines in labor share. Sixth, industries in which more firms report willingness to negotiate wages have greater concentrations of idiosyncratic revisions. An on-the-job search model with heterogeneous wage contracts can rationalize these facts.

Job Mobility and Sorting

2020 ◽  
Vol 240 (1) ◽  
pp. 19-49
Author(s):  
Damir Stijepic
Keyword(s):  
Human Capital ◽  
Risk Ratio ◽  
Negative Correlation ◽  
Job Search ◽  
Formal Education ◽  
Job Mobility ◽  
Search Model ◽  
Program Participation ◽  
Job Transitions ◽  
General Experience

AbstractMotivated by the canonical (random) on-the-job search model, I measure a person’s ability to sort into higher ranked jobs by the risk ratio of job-to-job transitions to transitions into unemployment. I show that this measure possesses various desirable features. Making use of the Survey of Income and Program Participation (SIPP), I study the relation between human capital and the risk ratio of job-to-job transitions to transitions into unemployment. Formal education tends to be positively associated with this risk ratio. General experience and occupational tenure have a pronounced negative correlation with both job-to-job transitions and transitions into unemployment, leaving the risk ratio, however, mostly unaffected. In contrast, the estimates suggest that human-capital concepts that take into account the multidimensionality of skills, e.g. versatility, play a prominent role.

scholarly journals Quantifying the Contribution of Search to Wage Inequality

2014 ◽  
Vol 6 (1) ◽  
pp. 134-161 ◽  
Author(s):  
Volker Tjaden ◽  
Felix Wellschmied
Keyword(s):  
Labor Market ◽  
Wage Inequality ◽  
Job Search ◽  
Search Model ◽  
Search Frictions ◽  
Job Transitions ◽  
The Difference

We empirically establish that one-third of job transitions leads to wage losses. Using a quantitative on-the-job search model, we find that 60 percent of them are movements down the job ladder. Accounting for them, our baseline calibration matches the large residual wage inequality in US data while attributing only 13.7 percent of overall wage inequality to the presence of search frictions in the labor market. We can trace the difference between ours and previous much higher estimates to our explicit modeling of nonvalue improving job-to-job transitions. (JEL J24, J31, J64)

An Empirical Equilibrium Job Search Model With Search on the Job and Heterogeneous Workers and Firms

1999 ◽  
Vol 40 (4) ◽  
pp. 1039-1074 ◽  
Author(s):  
Christian Bontemps ◽  
Jean-Marc Robin ◽  
Gerard J. Van den Berg
Keyword(s):  
Job Search ◽  
Search Model

scholarly journals Searching For Better Prospects: Endogenizing Falling Job Tenure and Private Pension Coverage

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Leora Friedberg ◽  
Michael T Owyang ◽  
Tara M Sinclair
Keyword(s):  
Job Search ◽  
Search Costs ◽  
Private Pension ◽  
Search Model ◽  
Defined Benefit ◽  
Job Tenure ◽  
Relative Wages ◽  
Pension Coverage ◽  
New Evidence ◽  
General Conditions

Abstract Recent declines in job tenure have coincided with a shift away from traditional defined benefit (DB) pensions, which reward long tenure. New evidence also points to an increase in job-to-job movements by workers, and we document gains in relative wages of job-to-job movers over a similar period. We develop a search model in which firms may offer tenure-based contracts like DB pensions to reduce the incidence of costly on-the-job search by workers. Either reduced search costs or an increase in the probability of job matches can, under fairly general conditions, lower the value of deterring search and the use of DB pensions.

Navigating the Turbulent Waters of Career Transitions

2017 ◽  
pp. 1022-1035
Author(s):  
Lynn M. Joseph ◽  
Nancy Kymn Harvin Rutigliano ◽  
Amy Frost
Keyword(s):  
Job Search ◽  
Job Loss ◽  
Personal Control ◽  
Traumatic Experiences ◽  
Job Seekers ◽  
Emotional Resilience ◽  
Job Transitions ◽  
Personal Impact ◽  
Growth Opportunity ◽  
Mental And Physical Health

Leaders, managers, professionals, and employees throughout organizations worldwide often face a large number of job transitions, many unexpected, in their careers. Job loss is widely recognized as one of life's more traumatic experiences. It is a stressful, life-changing event—one that can lead to negative mental and physical health consequences and jeopardize financial security and relationships. In addition, mid- and late-career job seekers face unique job-search issues and challenges. Career transition, however, can also be a positive event and growth opportunity, especially when one has prepared in advance for the possible personal impact of widespread organizational restructuring and downsizing. Advance preparation supports career and emotional resilience. This chapter presents challenges surrounding job loss, discusses proven strategies and processes for those in transition, and offers the research-based tool of guided imagery as a means to increase resilience, perceptions of personal control, and job search self-efficacy along with speed of reemployment.

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