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• W2786611655 abstract "This paper argues that evolving comparative advantage is important not only for worker ?ows across sectors, but also for wage growth and lifetime earnings. First, the main individual-level relationship between sectoral mobility and wages is established using Panel Study of Income Dynamics. Second, a dynamic, stochastic multi-sector model with worker-sector match productivity is introduced to account for the relationship. In the model, a sector may experience simultaneous in?ows and out?ows of workers that are much larger than the corresponding net ?ows. Movers tend to have a lower wage than nonmovers both prior to, and after the move. Wages grow with sectoral tenure. Those who move more frequently tend to have lower lifetime earnings. Recent movers are more likely to move again. Labor mobility decreases with labor market experience. All these predictions of the model are consistent with data, but generated by a remarkably simple, evolving match productivity shock." @default.
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• W2786611655 date "2017-08-05" @default.
• W2786611655 modified "2023-09-27" @default.
• W2786611655 title "Dynamic Comparative Advantage, Directed Mobility Across Sectors, and Wages" @default.
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