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Title: Asymmetric Information, Employer Learning, and the Job Mobility of Young Men
Resulting in 1 citation.
1. Zhang, Ye
Asymmetric Information, Employer Learning, and the Job Mobility of Young Men
Working Paper, Department of Economics, University of Maryland - College Park, December 2006.
Also: http://economics.missouri.edu/seminars/files/2007/zhang_jan26_2007.pdf
Cohort(s): NLSY79
Publisher: Department of Economics, University of Maryland
Keyword(s): Learning, Asymmetric; Mobility, Job; Schooling; Wages

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

This paper develops an asymmetric employer learning model in which endogenous job mobility is both a direct result of intensified adverse selection and a signal used by outside employers to update their expectations about workers' productive ability. The previous literature on asymmetric employer learning builds on two-period mover-stayer models and finds little empirical evidence of the differential impacts of ability and education on wages across tenure levels. This paper extends the mover-stayer framework by allowing the employment history to be observed by recruiting firms in a three-period model. I derive new empirical implications regarding the relationship between wage rates, ability, schooling and overall measures of job mobility. Testing the model with data from the National Longitudinal Survey of Youth 1979 (NLSY-79), I find strong evidence supporting the three-period asymmetric employer learning model.
Bibliography Citation
Zhang, Ye. "Asymmetric Information, Employer Learning, and the Job Mobility of Young Men." Working Paper, Department of Economics, University of Maryland - College Park, December 2006.