Job-to-Job Flows and Earnings Growth

Hahn, Joyce K.; Hyatt, Henry; Janicki, Hubert P.; Tibbets, Stephen

doi:10.2139/ssrn.2901493

Cited by 9 publications

(11 citation statements)

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“…In Italy the contribution of movers was around 40% of total wage growth before the Great Recession and declined to almost zero during the prolonged recessionary period of 2009-2014. (These results are indeed rather similar toHahn et al (2017Hahn et al ( , 2018 for the US.) 4 The composition channel: observed job-to-job transitions and wage growth of stayers and movers…”

supporting

confidence: 91%

Job-to-job Flows and Wage Dynamics in France and Italy

2020

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Some recent literature about the U.S. shows that wage dynamics are more influenced by jobto-job flows than by flows into or out of employment. In this paper, we evaluate whether this result holds also for France and Italy, characterized by a different structure of the labor market. Using comparable administrative data we find that, as in the U.S., in both France and Italy realized job-to-job contribute positively to wage growth. However, since these flows are smaller and display much lower cyclicality than in the U.S., their contribution to aggregate wage dynamics is low, while the contribution of flows into and out of employment remains sizeable. We then look closely at the heterogeneity in the probability of changing job and in the associated wage premium by types of workers and firms. We find that job-to-job flows and the associated gain tend to be larger in high-skilled occupations and for permanent workers. Moreover, as in the U.S., individuals are more likely to move to younger firms, which intensively poach workers from other firms. 3

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supporting

confidence: 91%

Job-to-job Flows and Wage Dynamics in France and Italy

2020

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“…Hahn et al () focus on understanding the cyclicality of US real wages distinguishing job stayers, job changers, and those who move into and out of employment separately. They find that the contributions to earnings growth from job changers is pro‐cyclical, from movements into/out of employment is countercyclical, and from job stayers is acyclical.…”

Section: Literature Reviewmentioning

confidence: 99%

Contributions of Employment Change to Annual Wage Growth in New Zealand

Hyslop

Rice

2019

Australian Economic Review

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We analyse trends in average wage growth in New Zealand from 1997 to 2015, focusing on the contributions of within-group wage growth and employment compositional changes, and whether there have been secular or cyclical changes in these contributions. Real wage growth was mildly pro-cyclical over the period, and has been weaker during the recovery from the global financial crisis. We estimate that within-group wage growth dominated aggregate wage growth, and compositional changes provided only trivial contributions. Furthermore, within-group wage growth is primarily from constant composition wage growth, contributing on average 0.9 per cent to annual wage growth, while improvements in observable human capital characteristics of workers contributed 0.4 per cent on average.

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“…Average earnings in the LEHD data have recently been considered by Hahn et al . (), Hyatt and Spletzer () and Karahan et al . ().…”

Section: The Datamentioning

confidence: 97%

“…Hahn et al . () provide more recent evidence that the earnings changes associated with job change are procyclical and also lead to earnings increases in the aggregate economy. Haltiwanger et al .…”

Section: Theory and Evidence On Job Reallocation And Churnmentioning

confidence: 99%

“…The recent work of Daly and Hobijn () and Hahn et al . () have recently documented a channel for countercyclical wage and earnings growth that is understood in part based on returns to job tenure. These studies provide evidence that workers leaving employment for nonemployment (i.e., including retirees) tend to earn more than workers leaving nonemployment for employment (i.e., including young people looking for work for the first time).…”

Section: Theory and Evidence On Job Reallocation And Churnmentioning

confidence: 99%

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Labor Reallocation, Employment, and Earnings: Vector Autoregression Evidence

Hyatt

McElroy

2019

Labour

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We present time series evidence for the USA 1993–2013 on the relationship between labor reallocation, employment, and earnings using a vector autoregression framework. We find that an increase in labor market churn by 1 percentage point predicts that employment will increase by 100,000–560,000 jobs, lowering the unemployment rate by 0.05–0.25 percentage points. Job destruction does not predict changes in employment but a 1 percentage point increase in job destruction leads to an increase in unemployment 0.14–0.42 percentage points. We find mixed results on the relationship between labor reallocation rates and earnings.

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Job-to-Job Flows and Earnings Growth

Cited by 9 publications

References 1 publication

Job-to-job Flows and Wage Dynamics in France and Italy

Job-to-job Flows and Wage Dynamics in France and Italy

Contributions of Employment Change to Annual Wage Growth in New Zealand

Labor Reallocation, Employment, and Earnings: Vector Autoregression Evidence

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