Occupational Job Ladders and Displaced Workers

Abstract: I investigate how movements up and down an occupational job ladder lead to earnings gains and losses for both displaced and non-displaced workers. I find both types of workers exhibit similar rates of upward and downward mobility, and relative occupational wages before mobility strongly predict the direction of mobility. I decompose the difference in wage changes between displaced and non-displaced individuals, and show that occupational mobility can explain about 10% of the gap, indicating that occupational mobility is not the primary source of wage losses for displaced workers.