Who Benefits from a Job Change: The Dwarfs or the Giants?

IRISS Working Paper No. 2007-16

35 Pages Posted: 19 Jan 2012

See all articles by Dimitris Pavlopoulos

Dimitris Pavlopoulos

VU University Amsterdam - Faculty of Social Sciences

Didier Fouarge

Maastricht University

Ruud Muffels

Tilburg University

J. Vermunt

Tilburg University - Department of Methodology and Statistics

Date Written: December 1, 2007

Abstract

Empirical studies have shown that voluntary job-to-job changes have a positive effect on wage mobility. In this paper, we suggest that the impact of a job change on wage growth depends on the position in the wage distribution. Using panel data from the UK and Germany, we investigate the effect of employer changes and within-firm job changes on year-to-year wage mobility. We show that a change of employer results into a wage increase for the low-paid workers but not for the high-paid workers. Within-firm job changes produce, on average, moderate wage gains for the low-paid workers in the UK, but have no effect in Germany. Results on 3-year wage mobility are shown to be very similar to the results on year-to-year wage growth.

Suggested Citation

Pavlopoulos, Dimitris and Fouarge, Didier and Muffels, Ruud and Vermunt, J., Who Benefits from a Job Change: The Dwarfs or the Giants? (December 1, 2007). IRISS Working Paper No. 2007-16, Available at SSRN: https://ssrn.com/abstract=1988255 or http://dx.doi.org/10.2139/ssrn.1988255

Dimitris Pavlopoulos (Contact Author)

VU University Amsterdam - Faculty of Social Sciences ( email )

De Boelelaan 1081
Amsterdam, 1081 HV
Netherlands

Didier Fouarge

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Ruud Muffels

Tilburg University ( email )

Postbus 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands
0031134662795 (Phone)
0031134663003 (Fax)

HOME PAGE: http://www.uvt.nl/

J. Vermunt

Tilburg University - Department of Methodology and Statistics ( email )

PO Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://spitswww.uvt.nl/~vermunt/

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