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In fact, this is the first study that calculates such present values using actual data on job durations and wages.
Reviews by Martin and Grubb (2001), Calmfors et al. (2001) and Kluve and Schmidt (2002) cleary show the lacking evidence on the relationship between ALMPs and job durations.
The 90th percentile in the distribution of job durations of new matches between 1988–2002 (and further observed until 2011) is 99 months.
Hence, as a result of these differences in expected job durations, firms find much more profitable to invest on permanent workers than on temporary workers.
Using actual match-specific data on wages and job durations, I obtain a cyclicality estimate for this net present value of wages in new matches of the same order as the one I find for wages of newly-hired workers.
To measure wage elasticity, I estimate a hazard model on voluntary job separations using the RAIS, a linked employer-employee dataset that captures formal-sector workers' job durations over time.
Similar(49)
Average job duration too has changed relatively little in the past 30 years and the much-discussed gig economy is as yet small, its impacts anecdotal rather than substantive – even if that may partly be a factor of official measurability.
Our results show that technological intensity reinforces the positive relationship between skills and job duration.
In this context, we aim to study workers' job duration and the role of technology-skills complementarities in manufacturing firms.
For the latter group, job duration increases with the length of the benefit period.
Previous literature has employed different specifications to estimate the job duration hazard.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com