A New Way of Analyzing Labour Market Flows Using Work History Data

Abstract

The methodological component of this paper describes a novel way of analyzing work-history data, treating the job change as the unit of analysis rather than the individual or the job. After considering the theoretical and practical problems and advantages of such an approach, two examples are given of the ways in which this technique can be used in the investigation of macro-level and micro-level labour market phenomena concerning the way in which individuals move between jobs. First, the way in which the rate of promotions and involuntary demotions follows the national unemployment rate is demonstrated. In times of high unemployment involuntary transitions from better to worse-paid jobs become much more numerous, even when that transition is not accompanied by a spell of unemployment. Second, the way in which demotions (whether precipitated by domestic considerations or dismissals and redundancies) and promotions are associated with moves from larger to smaller establishments is investigated and discussed. The case of women moving to small establishments is particularly striking; small firms may provide flexible jobs which are more compatible with women's domestic roles, but at some cost in terms of pay.