GEP Research Paper 08/23
Structural Adjustment, Turnover and Career Mobility
Spiros Bougheas, Carl Davidson, Richard Upward and Peter Wright
Summary
We develop a dynamic, stochastic multi-sectoral, equilibrium model that allows for worker turnover, job turnover and career mobility. This serves to bridge the reallocation and job career literatures.
Abstract
We develop a dynamic, stochastic multi-sectoral, equilibrium model that allows for worker turnover, job turnover and career mobility. This serves to bridge the reallocation and job career literatures. Our model makes a number of predictions: a positive correlation between job turnover rates and promotion rates a positive correlation across sectors between mean real income and their corresponding variance; an inverse relationship between sector profitability and both the job turnover rate and income inequality. These predictions are supported empirically.
Issued in July 2008
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