Full Citation

Title: New Evidence on Mobility and Wages of the Young and Old

Citation Type: Working Paper

Publication Year: 2015

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: We present new evidence on the wage and mobility of young and old workers, which is difficult to explain using standard human capital theory. Instead, we propose a simple dynamic extension of the Roy model, where worker migration and wages are jointly determined at the individual level. According to this model, a higher moving cost among older workers is the main factor driving the lower mobility among this group. Because of the higher moving costs, older workers require a higher wage increase to move across regions than younger workers, a pattern that is consistent with individual-level U.S. data. We also find an interesting dynamic effect suggesting that, given a persistent labor income shock, a higher future moving cost makes workers more mobile today.

Url: http://ftp.iza.org/dp9258.pdf

User Submitted?: No

Authors: Hansen, Jorgen; Lkhagvsuren, Damba

Series Title:

Publication Number: 9258

Institution: IZA

Pages:

Publisher Location: Bonn

Data Collections: IPUMS USA

Topics: Aging and Retirement, Labor Force and Occupational Structure, Other

Countries: