TY  - RPRT
        AU  - Black, Ines
AU  - Figueiredo, Ana
        TI  - The Illusion of Cyclicality in Entry Wages
        PY  - 2024/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17189
        UR  - https://www.iza.org/publications/dp17189
        AB  - We show that occupation mobility creates the illusion of cyclical hiring wages. Using administrative data, we find that wages of new hires who remain in the same occupation are no more cyclical than those of existing workers, whereas wages of occupation switchers are highly cyclical. We uncover higher wage cyclicality also among workers who switch occupations within the same firm. Moreover, wage cyclicality increases, the more different current and previous occupations' required skills. Our results suggest that the widely documented cyclicality of entry wages reflects composition effects due to changes in match quality in worker's occupation, rather than wage flexibility.
        KW  - wage cyclicality
KW  - occupational mobility
KW  - reallocation
KW  - match quality
        ER  -