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What is stopping you? The falling employment-to-employment mobility in the UK
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Chan, See-Yu (2024) What is stopping you? The falling employment-to-employment mobility in the UK. Working Paper. University of Warwick. Department of Economics: Coventry, UK. Warwick economics research papers series (WERPS), 1496 . (Unpublished)
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Official URL: https://warwick.ac.uk/fac/soc/economics/research/w...
Abstract
What contributed to the decline in employment-to-employment (EE) transition rate in the UK in recent decades? This paper empirically examines potential channels that caused the sluggish EE mobility from 2000-2019. First, I break down the observed fall in EE mobility relative to unemployed-to-employment (UE) transition into changes in relative search intensity and worker’s acceptance rate. I find the vast majority of the persistent decline after 2010 was due to fall in job acceptance. Second, I estimate a dynamic job ladder model using UK survey data to examine the relative importance of changes in employment and job offer distribution in reducing job acceptance. Results reveal that the falling job acceptance in the 2000s was attributed to workers moving up the job ladder; while acceptance remained low in the 2010s as a result of deterioration in offer qualities. Counterfactual exercise shows that if the attractiveness of poaching offers did not deteriorate after 2010, the EE mobility would have returned to levels in early 2000s. Finally, I test the contribution of composition changes to the fall in EE rate by implementing a between-within decomposition using a structural framework, which accounts for both worker heterogeneity and sectoral compositions. Results rule out demographic changes or structural transformation as main drivers of the fall in EE rates.
Item Type: | Working or Discussion Paper (Working Paper) | ||||||
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Subjects: | H Social Sciences > HD Industries. Land use. Labor | ||||||
Divisions: | Faculty of Social Sciences > Economics | ||||||
Library of Congress Subject Headings (LCSH): | Occupational mobility -- Great Britain, Career changes -- Great Britain, Job offers, Labor market -- Great Britain | ||||||
Series Name: | Warwick economics research papers series (WERPS) | ||||||
Publisher: | Coventry, UK | ||||||
Place of Publication: | University of Warwick. Department of Economics | ||||||
ISSN: | 0083-7350 | ||||||
Official Date: | April 2024 | ||||||
Dates: |
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Volume: | 1496 | ||||||
Institution: | University of Warwick | ||||||
Status: | Not Peer Reviewed | ||||||
Publication Status: | Unpublished | ||||||
Access rights to Published version: | Free Access (unspecified licence, 'bronze OA') | ||||||
Open Access Version: |
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