Manuscript received September 2006; accepted July 2008.
A DYNAMIC ANALYSIS OF EDUCATIONAL ATTAINMENT, OCCUPATIONAL CHOICES, AND JOB SEARCH*
Article first published online: 24 FEB 2010
© (2010) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
International Economic Review
Volume 51, Issue 1, pages 289–317, February 2010
How to Cite
Sullivan, P. (2010), A DYNAMIC ANALYSIS OF EDUCATIONAL ATTAINMENT, OCCUPATIONAL CHOICES, AND JOB SEARCH. International Economic Review, 51: 289–317. doi: 10.1111/j.1468-2354.2009.00580.x
I would like to thank John Pepper, William Johnson, and especially Steven Stern for their invaluable assistance during this project. I thank three anonymous referees and the editor, Petra Todd, for helpful comments and suggestions. This research has benefited from discussions with Loren Smith, John Bound, Timothy Erickson, Randal Verbrugge, and Daniel Mackay and from the comments of numerous seminar participants. I gratefully acknowledge financial support for this research provided by the Bankard Fund for Political Economy at the University of Virginia, the University of Virginia College of Arts and Sciences, and a National Institute on Aging Post Doctoral Fellowship at the University of Michigan (grant number AG000221-14). All views and opinions expressed in this article are those of the author and do not necessarily represent the views of the Bureau of Labor Statistics. Please address correspondence to: Paul Sullivan, Department of DPINR, Bureau of Labor Statistics, Postal Square Building Room 3105, MC 204, 2 Massachusetts Ave. NE, Washington, DC 20212-0001. Phone: 202 691-6593. Fax: 202 691-6583. E-mail: Sullivan.Paul.Joseph@bls.gov or firstname.lastname@example.org.
- Issue published online: 24 FEB 2010
- Article first published online: 24 FEB 2010
This article examines career choices using a dynamic structural model that nests a job search model within a human capital model of occupational and educational choices. Wage growth occurs in the model because workers move between firms and occupations as they search for suitable job matches and because workers endogenously accumulate firm and occupation specific human capital. Simulations performed using the estimated model reveal that both self-selection in occupational choices and mobility between firms account for a much larger share of total earnings and utility than the combined effects of firm and occupation specific human capital.