An estimate of a sectoral model of labor mobility

B. Jovanovic, R. Moffitt

    Research output: Contribution to journalArticle

    Abstract

    Develops a model of sectoral labor mobility and tests its main implications. The model nests two distinct hypotheses on the origin of mobility: sectoral shocks; and 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. We find that the mobility option raises expected earnings by roughly between 8.5% and 13% of labor earnings, which translates to an increase in GNP of between 6% and 9%. -from Authors

    Original languageEnglish (US)
    Pages (from-to)827-852
    Number of pages26
    JournalJournal of Political Economy
    Volume98
    Issue number4
    DOIs
    StatePublished - Jan 1 1990

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    ASJC Scopus subject areas

    • Economics and Econometrics

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