Wage Gains Among Job Changers Across the Business Cycle: Insight from State Administrative Data

FRB of Atlanta Working Paper No. 2004-19

45 Pages Posted: 3 Sep 2004

See all articles by Julie L. Hotchkiss

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta; Georgia State University - Department of Economics

M. Melinda Pitts

Federal Reserve Bank of Atlanta

John Robertson

Federal Reserve Bank of Atlanta

Date Written: August 2004

Abstract

This paper uses unique employer-employee matched administrative data files to determine that firm and industry employment dynamics play significant roles in the earnings gains of workers who change jobs and in different ways across the business cycle. Among the more notable results is the finding that job-changers who leave a firm that is shutting down experience a greater earnings loss than job-changers who leave a firm that is merely contracting. In addition, the earnings loss from changing industries where firm-specific human capital is likely to be important has the potential of creating a much greater barrier to labor mobility during recessionary times than during an expansion.

Keywords: Labor mobility, industry dynamics, administrative data

JEL Classification: J23, E32, J21

Suggested Citation

Hotchkiss, Julie L. and Pitts, M. Melinda and Robertson, John C., Wage Gains Among Job Changers Across the Business Cycle: Insight from State Administrative Data (August 2004). FRB of Atlanta Working Paper No. 2004-19. Available at SSRN: https://ssrn.com/abstract=585601 or http://dx.doi.org/10.2139/ssrn.585601

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta ( email )

Research Department
1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
404-498-8198 (Phone)
404-498-8058 (Fax)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

M. Melinda Pitts (Contact Author)

Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street, NE
Atlanta, GA 30309-4470
United States
404-498-7009 (Phone)
404-498-8956 (Fax)

John C. Robertson

Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street, NE
Atlanta, GA 30309-4470
United States
404-521-8782 (Phone)
404-521-8956 (Fax)

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