So Many Rocket Scientists, so Few Marketing Clerks: The Measurement, Determinants and Impact of Occupational Change in the Estonian Transition
Posted: 12 Sep 2001
Date Written: January 2001
Abstract
The transition from centrally planned to market economy entails a massive process of occupational change that has been largely neglected in the literature. This paper fills this void by providing a detailed description of this process and by investigating its determinants and consequences. Using data from a representative survey of Estonian workers from 1989 to 1995, we estimate that between 35 and 50% of all employed workers changed occupation in this short period of time. Further, we find that the bulk of these occupational switches occurred in the early years of the transition. As for the determinants of occupational change, we find that the main factors lowering the probability of an employed worker changing occupation are gender (female) and longer potential experience and job tenure. Surprisingly, (present or future) returns to current and alternative occupations do not play a systematic role in explaining the probability of switching. Regarding the impact of occupational change, we find that the private costs of occupational mobility have outweighed the benefits (occupational mobility restrains wage growth).
Keywords: Occupational Mobility, Human Capital, Transition Economies.
JEL Classification: J62, J63, J64, J23, C41, H53
Suggested Citation: Suggested Citation