Job Changes and Individual-Job Specific Wage Dynamics

28 Pages Posted: 6 May 2009

See all articles by Laura Hospido

Laura Hospido

Banco de España - Research Department

Multiple version iconThere are 2 versions of this paper

Date Written: May 4, 2009


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.

Keywords: Panel data, dynamic models, individual-job specific fixed effects, job changes, individual wages

JEL Classification: C23, J31

Suggested Citation

Hospido, Laura, Job Changes and Individual-Job Specific Wage Dynamics (May 4, 2009). Banco de Espana Working Paper No. 0907, Available at SSRN: or

Laura Hospido (Contact Author)

Banco de España - Research Department ( email )

Alcala 48
Madrid, 28014
+34 913385625 (Phone)
+34 913385678 (Fax)


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