Working Paper BETA #2006-32

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Title : Job mobility in Portugal: a Bayesian study with matched worker-firm data

Author(s) : Guillaume Horny, Rute Mendes, Gerard J. Van den Be

Abstract : We study job mobility using a multivariate hazard model in discrete time. It involves two correlated random effects, one at the firm level and another at the worker level. Bayesian estimates are based on a Portuguese matched employer-employee dataset. Our results confirm the importance of unobserved heterogeneity at the individual level and at the firm level. Furthermore, the model performs better when allowing for an assortative matching mecanism in terms of employers’ and employees’ unobservables.

Key-words : Job transitions, assortative matching, Gibbs sampling, frailties, dynamic models, matched employer-e

JEL Classification : C110, C150, C410, J200, J410, J620