Flex Work Research Centre

Job mobility and careers in firms

This paper presents a theoreticalmodel that combines employers learning about worker productivity, human
capital acquisition, job-assignment and resolution of worker uncertainty regarding disutility of work from a job,
to show how widely documented findings on both wage and promotion dynamics and turnover can be captured
in a single set-up. Specifically we show how our model can capture results such as; probability of turnover
decreases with labor market experience, wage changes during job changes is more in earlier periods, serial
correlation in wages and probability of promotion increases in wages, amongst others.