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Source: Federal Reserve Bank of St. Louis
Resulting in 3 citations.
1. Canon, Maria E.
Pavan, Ronni
Wage Dynamics and Labor Market Transitions: A Reassessment through Total Income and "Usual" Wages
Working Paper 2014-032A, Federal Reserve Bank of St. Louis, October 2014.
Also: https://research.stlouisfed.org/wp/2014/2014-032.pdf
Cohort(s): NLSY79
Publisher: Federal Reserve Bank of St. Louis
Keyword(s): Earnings; Income Dynamics/Shocks; Transition, Job to Job; Wage Dynamics

Permission to reprint the abstract has not been received from the publisher.

We present a simple on-the-job search model in which workers can receive shocks to their employer-specific productivity match. Because the firm-specific match can vary, wages may increase or decrease over time at each employer. Therefore, for some workers, job-to-job transitions are a way to escape job situations that worsened over time. We use two independent measures of workers compensation to provide a convincing identification strategy for the presence of a job-specific or employer-specific wage shock process. In the first measure, workers are asked about the usual wage they earn with a certain employer. In the second measure, workers are asked about their total amount of labor earnings during the previous year. While the first measure records the wages at a given point in time, the second measure records the sum of all wages within one year. We calibrate our model using both measures of workers compensation and data on employment transitions. The results show that 59% of the observed wage cuts following job-to-job transitions are due to deterioration of the firm-specific component of wages before workers switch employers.
Bibliography Citation
Canon, Maria E. and Ronni Pavan. "Wage Dynamics and Labor Market Transitions: A Reassessment through Total Income and "Usual" Wages." Working Paper 2014-032A, Federal Reserve Bank of St. Louis, October 2014.
2. Wheeler, Christopher H.
Cities and the Growth of Wages Among Young Workers Evidence from the NLSY
Working Paper 2005-055A, Federal Reserve Bank of St. Louis, 2005.
Also: http://research.stlouisfed.org/wp/more/2005-055
Cohort(s): NLSY79
Publisher: Federal Reserve Bank of St. Louis
Keyword(s): Earnings; Human Capital Theory; Labor Market Demographics; Skills; Wage Growth

Permission to reprint the abstract has not been received from the publisher.

Human capital-based theories of cities suggest that large, economically diverse urban agglomerations increase worker productivity by increasing the rate at which individuals acquire skills. One largely unexplored implication of this theory is that workers in big cities should see faster growth in their earnings over time than comparable workers in smaller markets. This paper examines this implication using data on a sample of young male workers drawn from the National Longitudinal Survey of Youth 1979 Cohort. The results suggest that earnings growth does tend to be faster in large, economically diverse local labor markets--defined as counties and metropolitan areas--than in smaller, more specialized markets. Yet, when examined in greater detail, I also find that this association tends to be the product of faster wage growth due to job changes rather than faster wage growth experienced while on a particular job. This result is consistent with the idea that cities enhance worker productivity through a job search and matching process and, thus, that an important aspect of 'learning' in cities may involve individuals learning about what they do well"--Federal Reserve Bank of St. Louis web site.
Bibliography Citation
Wheeler, Christopher H. "Cities and the Growth of Wages Among Young Workers Evidence from the NLSY." Working Paper 2005-055A, Federal Reserve Bank of St. Louis, 2005.
3. Wheeler, Christopher H.
Local Market Scale and the Pattern of Job Changes Among Young Men
Working Paper 2005-033A, Federal Reserve Bank of St. Louis, 2005.
Also: http://research.stlouisfed.org/wp/more/2005-033
Cohort(s): NLSY79
Publisher: Federal Reserve Bank of St. Louis
Keyword(s): Career Patterns; Job Search; Labor Market Demographics

Permission to reprint the abstract has not been received from the publisher.

In finding a career, workers tend to make numerous job changes, with the majority of 'complex' changes (i.e. those involving changes of industry) occurring relatively early in their working lives. This pattern suggests that workers tend to experiment with different types of work before settling on the one they like best. Of course, since the extent of economic diversity differs substantially across local labor markets in the U.S. (e.g. counties and cities), this career search process may exhibit important differences depending on the size of a worker's local market. This paper explores this issue using a sample of young male workers drawn from the National Longitudinal Survey of Youth 1979 Cohort. The results uncover two rather striking patterns. First, the likelihood that a worker changes industries rises with the size and diversity of his local labor market when considering the first job change he makes. Second, however, this association gradually decreases as a worker makes greater numbers of job changes. By the time he makes his fourth change, the likelihood of changing industries significantly decreases with the scale and diversity of the local market. Both results are consistent with the idea that cities play an important role in the job matching process. --Federal Reserve Bank of St. Louis web site.
Bibliography Citation
Wheeler, Christopher H. "Local Market Scale and the Pattern of Job Changes Among Young Men." Working Paper 2005-033A, Federal Reserve Bank of St. Louis, 2005.