Worker-Job Matches, Job Mobility, and Real Wage Cyclicality

Abstract

Using the British New Earnings Survey Panel Data from 1980 to 2001, this paper examines male and female real wage cyclicality. Estimation is undertaken separately for job stayers and job movers. A unique data advantage compared to earlier studies is that movers are defined by job changes both within and between companies. Core estimates concern real hourly standard wage rates. Special features include (a) differentiating between white- and blue-collar workers, (b) delineating job stayers by length of job tenure, (c) examining the cyclicality of the average overtime premium, (d) distinguishing between hourly wage earnings and hourly wage rates. Wage cyclicality in Britain is found to be significantly greater than comparable United States estimates.

Keywords: real wage cyclicality, job stayers, job movers

JEL Classification: E32, J31, J62