EARNINGS AND JOB MOBILITY OVER THE LIFE CYCLE: INTERNAL AND EXTERNAL PROCESSES

Introduction The literature on earnings change has increasingly suggested that the key processes generating earnings inequality are those operating within the firm. However, there has been little empirical work on these phenomena, largely reflecting data deficiencies. Very few data‐sets on earnings contain information about internal processes and those which do often measure them narrowly. For example, most surveys of labour mobility define it either as movement between firms or as such movement plus major, once‐and‐for‐all changes of work type.