Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302706 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17189
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We show that occupation mobility creates the illusion of cyclical hiring wages. Using administrative data, we find that wages of new hires who remain in the same occupation are no more cyclical than those of existing workers, whereas wages of occupation switchers are highly cyclical. We uncover higher wage cyclicality also among workers who switch occupations within the same firm. Moreover, wage cyclicality increases, the more different current and previous occupations' required skills. Our results suggest that the widely documented cyclicality of entry wages reflects composition effects due to changes in match quality in worker's occupation, rather than wage flexibility.
Subjects: 
wage cyclicality
occupational mobility
reallocation
match quality
JEL: 
J31
J61
E24
E32
Document Type: 
Working Paper

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