Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 06-9: Job Mobility and Wage Dynamics

Valérie Smeets ()
Additional contact information
Valérie Smeets: Department of Economics, Aarhus School of Business, Postal: Universidad Carlos III de Madrid & Center for Corporate Performance, The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

Abstract: Using a dataset covering the population of Danish private-sector workers, I analyze the relationship between job changes and wage dynamics. I …nd that the number of past job changes is positively related to wages. This result is consistent with the idea that workers changing …rms end up with better matches than workers who do not change …rms. The main …ndings are veri…ed using the U.S. NLSY panel data, implying that they can not be attributed to the peculiarities of the Danish labor market

Keywords: Worker turnover; wages; matching; human capital; matched employer-employee data

JEL-codes: J24; J31

42 pages, January 1, 2006

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