Job changes and individual-job specific wage dynamics

• Autores: Laura Hospido Quintana
• Localización: Documentos de trabajo - Banco de España, ISSN 0213-2710, Nº 7, 2009, págs. 1-28
• Idioma: inglés
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• Resumen

  • This paper develops an error components model that is used to examine the impact of job changes on the dynamics and variance of individual log earnings. I use data on work histories drawn from the Panel Study of Income Dynamics (PSID), that makes possible to do the distinction between voluntary an involuntary job-to-job changes. The potential endogeneity of job mobility in relation to earnings es circumvented by means of an instrument variable estimation method that also allows to control for unobserved individual-job specific heterogeneity.