What is it about?
This paper compares the return to skills for firm stayers, firm changers in the same industry and firm changers to other industries. Based on a sample of Portuguese employees in retail banking, our results confirm significant inter-firm and inter-industry skill transferability. Difference-in-differences estimates with propensity score matching show that firm switchers benefit from a wage premium compared to firm stayers. However, the wage premium drops when movers leave the banking sector.
Why is it important?
Most studies on skill transferability focus on the return to capabilities developed in the initial job and disregard the different characteristics of the origin and the destination industries. In contrast, this paper accounts for the impact of origin and destination industry. In addition, to the authors’ knowledge this paper provides the first implementation of Abadie’s semi-parametric difference-in-differences PSM estimator for a multi-treatment case (Abadie, 2005).
The following have contributed to this page: Francesca Sgobbi