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Conference Paper 5th Nordic Econometric Meeting, held October 29-31 2009, Lund University, Sweden

Mobility between sectors in the UK: how does the financial situation affect mobility?


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This paper investigates the determinants of sectoral mobility of workers in the British Household Panel Survey (BHPS) between 1991 and 2004. The paper analyzes the effect of job and individual characteristics and financial variables on the likelihood of mobility between two digit sectors. The probability of sectoral migration increases with level of education, decreases with age and is higher for men than women. Job tenure and size of the employer reduce the likelihood of migration. Workers that experienced labour income growth in the previous year or have in any way improved their economic situation are less likely to migrate across two digit sectors. For previously sick or disabled workers, labour income growth last year increases the probability of changing sector. Workers in the sector 'other social and personal services, private household employees and extra-territorial bodies and institutions' have by far the highest sectoral migration rate, followed by 'transport, storage, communication and financial intermediation', and manufacturing sectors 'manufacturing of electrical equipment, communication equipment, instruments, and transport equipment' and 'manufacturing of wood, paper, plastic, rubber, metal, petroleum and chemical products'. The probability of sectoral migration was high in 2002 and low in the mid to late 1990s.


Labour Market and Income Dynamics



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