High and low earnings jobs

The fortunes of employers and workers

Jules Theeuwes, Julia Lane, David Stevens

Research output: Contribution to journalArticle

Abstract

The focus of the literature on the effect of job changes has been on the consequences of job destruction on the individual worker. In this paper we analyze the impact on the earnings distribution of both job creation and job destruction. We establish a link between job reallocation and the movement of workers into and out of the tails of the earnings distribution. Both job creating and job destroying employers shed jobs mostly from the middle and lower tails of the earnings distribution, although this is cyclically very sensitive. Labor mobility (triggered by reallocation) is risky: mobile workers will generally end up in the upper or lower tail of the distribution rather than in the middle. If workers move across industry boundaries, they typically move to the tails of the distribution. In sum, the fortunes of workers depend on the fortunes of their employers.

Original languageEnglish (US)
Pages (from-to)213-230
Number of pages18
JournalReview of Income and Wealth
Volume46
Issue number2
StatePublished - 2000

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Workers
Employers
Earnings distribution
Job destruction
Job change
Labour mobility
Reallocation
Job reallocation
Job creation
Industry

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

High and low earnings jobs : The fortunes of employers and workers. / Theeuwes, Jules; Lane, Julia; Stevens, David.

In: Review of Income and Wealth, Vol. 46, No. 2, 2000, p. 213-230.

Research output: Contribution to journalArticle

Theeuwes, Jules ; Lane, Julia ; Stevens, David. / High and low earnings jobs : The fortunes of employers and workers. In: Review of Income and Wealth. 2000 ; Vol. 46, No. 2. pp. 213-230.
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