Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150864
Authors: 
Isaoglu, Aysen
Year of Publication: 
2010
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 319
Abstract: 
This paper analyzes the determinants of annual worker reallocation across disaggregated occupations in western Germany for the period 1985-2003. Employing data from the German Socio-Economic Panel, the pattern of average occupational mobility is documented. Worker reallocation is found to be strongly procyclical. Its determinants at the individual level are then investigated while controlling for unobserved worker heterogeneity. A dynamic probit fixed effects model is estimated to obtain coefficients and marginal effects. The incidental parameter bias is reduced by the method proposed in Hahn and Kuersteiner (2004). An interesting finding is that workers changing occupation are about 8 to 9 percent less inclined to experience occupational mobility in the subsequent year than workers who do not change. Except for workers with only compulsory education, the impact of age on the probability of occupational change is declining in the level of education. The unemployment rate has a negative effect on the probability of occupational changes, especially for female foreigners.
Subjects: 
Dynamic binary choice models
fixed effects
incidental parameter bias
occupational mobility
Panel data
JEL: 
J24
J44
J62
C23
C25
C81
Document Type: 
Working Paper

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