Events

Title: Endogenous Career Mobility and Labor-Market Visibility

Abstract:
We develop and structurally estimate a theoretical model that endogenously generates, in equilibrium, promotions and horizontal moves (both internal and external) and their wage changes, quantitatively explaining these career moves and wage changes in a large, Finnish, employer-employee matched panel. Career mobility patterns are found to be stable across production environments (e.g., geographic location, industry, and job title). Counterfactual simulations show how career mobility patterns and associated wage changes evolve when the search frictions discussed in the modern monopsony literature – i.e., workers’ degree of labor-market visibility – change in their relative strengths across job levels.
Prof. Dr. Jed DeVaro