Job-to-job transitions and the regional job ladder

Authors

Andrew Coleman

Guanyu Zheng

Date published

18 March 2020

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This paper uses linked employee-employer data to examine the frequency with which workers change jobs in New Zealand, wage premiums associated with these job transitions, and the impact of house prices on worker mobility.

The most common change was for workers to transition from one job to another without a period of unemployment, helping workers to climb the “job ladder” to progress their skills, seniority, and wages.

The Commission found that on average, every year, 21% of workers change their employers. About 61% stay where they are, and the rest leave the workforce going into retirement, unemployment, study or looking after family members.

Focusing on the period after the 2008 global financial crisis, the Commission found that the recession meant workers were less likely to change jobs and, when they did move, any boost to their wages was lower than in non-recessionary times.

Read the report here.

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