Munich Personal RePEc Archive

Does a change of occupation lead to higher earnings?

Liberda, Barbara and Peczkowski, Marek (2011): Does a change of occupation lead to higher earnings? Published in: Statistics in Transition-new series , Vol. 12, No. 1 August 2011 (2011): pp. 193-206.

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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 30540 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.

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