Education and occupational mobility

Abstract

This paper analyzes the effect of education on different types of occupational mobility. The focus of the analysis is on “career mobility”, an upward occupational mobility along a series of occupations that forms a worker's career. More educated workers are less likely, on average, to change occupation due to larger amounts of occupational specific investment and also because their careers involve a fewer number of distinct occupations. Within the same occupation of origin, however, more educated workers are more likely to move to a higher level occupation, within the firm (promotion) or across firms. In those occupations where the effect of schooling on wages is lower, schooling has a stronger effect on the likelihood of moving to a higher level occupation.