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Worker Reallocation across Occupations: Confronting Data with Theory

Research output: Contribution to journalArticle

Original languageEnglish
Pages (from-to)51-68
Number of pages18
JournalLabour Economics
Volume44
Journal issue1
Early online date18 Dec 2016
DOIs
StatePublished - Jan 2017

Abstract

This paper studies the secular behavior of worker reallocation across occupations in the U.S. labor market. In the empirical analysis, we use microdata to construct consistent time series over a forty-five year period, and document that the fraction of employment reallocated annually across occupations is highly stable in the long run. We go beyond description and use an equilibrium model to identify potential changes in the productivity shocks and mobility costs that govern worker reallocation across occupations. We uncover the joint evolution of these factors by deriving a simple mapping between data and the model. Our analysis shows that constant reallocation rates across occupations mask slow-moving increases in the volatility of productivity shocks since the mid-1980s, and a pronounced upward shift in the cost of switching occupations in the period surrounding the Great Recession.

Research areas

  • Occupations, Reallocation, Wages, Equilibrium search

Documents

Documents

  • Full-text PDF (accepted author manuscript)

    Rights statement: This is the author accepted manuscript (AAM). The final published version (version of record) is available online via Elsevier at http://www.sciencedirect.com/science/article/pii/S0927537116303943. Please refer to any applicable terms of use of the publisher.

    Accepted author manuscript, 520 KB, PDF-document

    Embargo ends: 18/06/18

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    License: CC BY-NC-ND

  • Supplementary information PDF - Online appendix

    Rights statement: This is the author accepted manuscript (AAM). The final published version (version of record) is available online via Elsevier at http://www.sciencedirect.com/science/article/pii/S0927537116303943. Please refer to any applicable terms of use of the publisher.

    Accepted author manuscript, 218 KB, PDF-document

    Embargo ends: 18/06/18

    Request copy

    License: CC BY-NC-ND

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