Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/44229 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
IZA Discussion Papers No. 5088
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
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 it possible to distinguish between voluntary and involuntary job-to-job changes. The potential endogeneity of job mobility in relation to earnings is circumvented by means of an instrument variable estimation method that also allows to control for unobserved individual-job specific heterogeneity. Once controlled for individual and job-specific effects, the persistence within jobs is almost zero, whereas across jobs is significant but small.
Subjects: 
panel data
dynamic models
individual-job specific fixed effects
job changes
individual wages
JEL: 
C23
J31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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