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Title: Employer Learning Under Asymmetric Information: The Role of Job Mobility
Resulting in 1 citation.
1. Zhang, Ye
Employer Learning Under Asymmetric Information: The Role of Job Mobility
Working Paper, Department of Economics, Indiana University, Purdue University, Indianapolis (IUPUI), November 2007.
Also: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1058801
Cohort(s): NLSY79
Publisher: Department of Economics, Indiana University Purdue University Indianapolis (IUPUI)
Keyword(s): Employment, History; Learning, Asymmetric; Mobility, Job; Schooling; Wage Rates

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

While recent literature suggests that employers learn about the productivity of new workers over time, there is little consensus on how information about workers' productive ability is accumulated by current and outside employers in the labor market. This paper studies the role played by endogenous job mobility during the employer learning process and develops an asymmetric employer learning model in which a worker's employment history can be used by outside employers to assess his quality. Previous studies on asymmetric employer learning builds on two-period mover-stayer models and precludes the signaling effects of job mobility by construction. By extending the mover-stayer framework to allow job mobility pattern be observed by recruiting firms in a three-period setting, I derive empirical implications regarding the relationship between wage rates, ability, schooling and overall measures of job mobility that enable me to differentiate symmetric employer learning model, mover-stayer model with asymmetric information, and asymmetric employer learning model with potential employers learning through workers' employment histories. 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. "Employer Learning Under Asymmetric Information: The Role of Job Mobility." Working Paper, Department of Economics, Indiana University, Purdue University, Indianapolis (IUPUI), November 2007.