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Occupational mobility over the business cycle

Liis Roosaar (Faculty of Economics and Business Administration, University of Tartu, Tartu, Estonia)
Pille Mõtsmees (Faculty of Economics and Business Administration, University of Tartu, Tartu, Estonia)
Urmas Varblane (Faculty of Economics and Business Administration, University of Tartu, Tartu, Estonia)

International Journal of Manpower

ISSN: 0143-7720

Article publication date: 26 August 2014

1558

Abstract

Purpose

The purpose of this paper is to examine how occupational mobility varies over the business cycle and how selected factors contribute to occupational mobility in different stages of the business cycle.

Design/methodology/approach

Using annual micro data from the Estonian Labour Force Survey (2001-2010) and implementing probit models with interaction terms, the paper investigates occupational mobility as a change of occupation in two successive years during recovery, boom and recession periods.

Findings

The analysis indicates that occupational mobility is higher during the recovery and boom periods and lower during the recession stage. The demographic characteristics (gender, marital status, knowledge of local language) influence the probability for occupational change during the recovery stage of the business cycle. The position of employees in the occupational hierarchy is significant during the recovery and boom periods. Employees working in the public sector have a lower probability for occupational change compared with private sector employees during the recession. Training has a positive effect on occupational mobility during recession. Tenure reduces the probability of occupational mobility over the whole business cycle.

Originality/value

The paper contributes to the literature by providing new results about the role of different factors of occupational mobility over the business cycle. This is among the few studies addressing the variation in the occupational mobility of employees from the public and private sectors. Interactions between the position of the employees in the occupational hierarchy and the ownership form of their employers and the economic sectors add to the understanding about the mechanism of occupational mobility over the business cycle stages.

Keywords

Acknowledgements

JEL Classifications — J62, E32

The authors thank Jaanika Meriküll and two anonymous referees for helpful comments. Financial support from European Social Fund's project No. 1.5.0109.10-0063 “Occupational mobility in Estonia – involved factors and effects”, and project No. IUT20-49 “Structural Change as the Factor of Productivity Growth in the Case of Catching up Economies” is gratefully acknowledged.

Citation

Roosaar, L., Mõtsmees, P. and Varblane, U. (2014), "Occupational mobility over the business cycle", International Journal of Manpower, Vol. 35 No. 6, pp. 873-897. https://doi.org/10.1108/IJM-06-2013-0130

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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