An Estimate of a Sectoral Model of Labor Mobility

Bibliographic Data

ID10176225
AuthorsBoyan Jovanovic (New York University), Robert Moffitt (0000-0002-3627-3057, National Bureau of Economic Research)
Year1990
Volume98
Issue4
Pages827-852
Publication date1990-08-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Political Economy (JOURNAL)
Journal identifiersISSN: 0022-3808 • E-ISSN: 1537-534X
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/261708
OpenAlexW1971688089
LanguageEN
Citations received6

This paper develops a model of sectoral labor mobility and tests its main implications. The model nests two distinct hypotheses on the origin of mobility: (1) sectoral shocks and (2) worker-employer mismatch. We estimate the relative importance of each hypothesis and find that the bulk of labor mobility is caused by mismatch rather than by sectoral shift. We then try to put a value on society's match--specific information. That is, we ask to what extent the availability of the option to change jobs raises GNP. We find that the mobility option raises expected earnings by roughly between 8.5 percent and 13 percent of labor earnings, which translates to an increase in GNP of between 6 percent and 9 percent. Copyright 1990 by University of Chicago Press

Econometrics · Economic geography · Economics · Labor mobility · Labour economics · Regional Economic and Spatial Analysis · Regional Economics and Spatial Analysis

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