Aggregate Real Wages Lebow, David E., Raven E. Saks, and Beth Anne Wilson (2003), âDownward Nominal Wage Rigidity: Evidence from the Employment Cost Index,â Advances in Macroeconomics, 3 article 2, 1-28.
- Aggregate Real Wages Not-in-the-same-job (NISJ) versus job-to-job (J2J) transitions What we are interested in is to derive the fraction of persons who we classify as NISJ who moved directly from one full-time job to another, i.e. job-to-job (J2J) transitions. What we would like to weed out are the persons who changed jobs and in between were either unemployed, out of the labor force, or part-time or self employed. Just like Fallick and Fleischman (2004) and NagypÃl (2008) we consider a job-to-job transition as one in which a CPS respondent reports to be employed in a particular job in one month and another job in the next month. Hence, this definition does not include an adjustment for time aggregation. That is, it does not correct for the possibility of such a worker having moved through a short spell of unemployment or part-time or self employment during the month in between the two responses.
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- Moscarini and Thomsson (2008) match MIS2 to MIS3 on average, 92.20 percent before 1994, and Fallick and Fleischman (2004) require age to be decreased by no more than one year or increased by no more than two years. Card and Hyslop (1997) use age plus or minus one year.
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- NagypÃl (2008) matches 94.82 percent of observations to their subsequent month in the time period 1994-2007. Our match yields 92.76 percent of observations matching within the same time period.
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- NagypÃl, Ãva (2008), âWorker reallocation over the business cycle: The importance of job-to-job transitions,â mimeo, Northwestern University.
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- Nekarda, Christopher J. (2009), âA Longitudinal Analysis of the Current Population Survey: Assessing the Cyclical Bias of Geographic Mobility,â mimeo, Federal Reserve Board of Governors.
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- Our âSame Jobâ rates are consistent with these other estimates in the literature. Card and Hyslop (1997) average 54.5 percent of matched, hourly workers from 1979-1980. In our sample, for hourly Aggregate Real Wages workers employed in MIS 4, 5, 6, 7, and 8, 52.4 percent are in the same job. Note that since we have access to labor status outcomes in MIS 5, 6, and 7, our overall same job rate is lower by definition. Fallick and Fleischman (2004) report that 97.3 percent of E->E workers stay in the same job. Over the same time period, our month-to-month test yields 93.6 percent of E->E workers are classified as job stayers. This difference is the result of our more restrictive month-to-month test.
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- Our results are very similar to other papers that have matched the CPS. Fallick and Fleischman (2004) match 94.9 percent of men, and 95.4 percent of women between MIS 2 and 3 of 1998. We match an identical number of observations over this time period. Card and Hyslop (1997) match 74.5 percent of the individuals in MIS 4 in 1979 to their MIS 8 observations in 1980 and 74.4 percent from 1992-1993. Our match rate is 74.3 percent and 72.6 percent, respectively.
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Perry, George L. (1972), âReal Spendable Weekly Earnings,â Brookings Papers on Economic Activity, No. 3, 779-787.
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Swanson, Eric T. (2007), âReal Wage Cyclicality in the Panel Study of Income Dynamics,â Scottish Journal of Political Economy, 54, 617-647.
- There are three different components to our same job definition. The first is the month-to-month match between MIS 5, 6, 7, and 8 post-1994. The second is the industry and occupation match across MIS 4 and 5 post-1994. Finally, pre-1994 we are matching on industry and occupation only. Each component of this match roughly corresponds to both to other definitions in the literature, and to each other component.
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