ARTICLE
ABSTRACT
The aim of this paper is to identify how the mobility between different types of broadly defined occupation (hired work, self-employment in industry, services and agriculture or social security beneficiaries) changes personal income of individuals. We apply the Markov matrices to the panel data on 30,540 individuals for 2007-2008 from the Polish Household Budget Surveys. Our hypothesis is that a change of occupation affects individual capability to earn income, controlling for the occupation a person quits and the occupation a person starts, as well as age, education level and a permanent or temporary character of work. We test our hypothesis using the regression analysis. Our results show that the inter-occupational mobility matters mostly for those quitting hired work for self-employment, for the better educated, as well as for respondents above 60 years of age.
KEYWORDS
income, earning, mobility, occupation, hired work, self-employment
JEL
D11, D12, D14
REFERENCES
ARROW KENNETH J., 1962, The Economic Implications of Learning by Doing, The Review of Economic Studies, Vol. 29, No. 3, 155-173.
BECKER GARY S., 1994, Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, New York, National Bureau of Economic Research.
BEN PORATH, YORAM, 1967, The Production of Human Capital and the Life Cycle of Earnings, Journal of Political Economy, 75(4), part 1, 352-365.
FRIEDMAN MILTON, 1957, A Theory of the Consumption Function, Princeton: Princeton University Press.
HOUSEHOLD BUDGET SURVEYS, 2007-2008 Panel of individuals, Poland, Central Statistical Office, Warsaw.
LIBERDA BARBARA, 2007, Income Preferences and Household Savings, Gospodarka Narodowa, No 9, pp. 19-30.
MILANOVIC BRANKO, 2008, Where in the World Are You? Assessing the Importance of Circumstance and Effort in a World of Different Mean Country Incomes and (almost) No Migration, Policy Research Working Paper Series 4493, The World Bank.
MINCER JACOB, 1974, Schooling, Experience and Earnings, New York: National Bureau of Economic Research.
MODIGLIANI FRANCO, 1986, Life Cycle, Individual Thrift, and the Wealth of Nations, American Economic Review, Vol. 76, No. 3, pp. 297-313.
SPENCE ANDREW MICHAEL, 1973, Job Market Signaling, Quarterly Journal of Economics, 87 (3), pp. 355-374.
