Should I Stay or Should I Go Now? An Investigation into Gender Differences in the Impact of Switching Jobs on Earnings

TL;DR

This study examines how gender influences earnings growth from job switching in the UK, revealing women gain less than men and highlighting the need for policies to address gender disparities in labour mobility benefits.

Contribution

It provides new evidence on gender differences in earnings returns to job mobility using recent UK data, considering occupational and age factors.

Findings

Job mobility correlates with higher earnings growth.

Women experience smaller gains from switching jobs than men.

Occupational mobility and age widen the gender gap.

Abstract

This paper investigates the relationship between job mobility and earnings growth in the UK labour market, with a focus on gender differences in the returns to switching jobs. Using data from the Annual Survey of Hours and Earnings (ASHE) between 2011 and 2023, the analysis compares wage progression for job switchers and stayers, controlling for individual and job characteristics. The findings show that job mobility is associated with higher earnings growth, but women experience smaller gains than men, with occupational mobility and age further widening this gap. However, the study finds no statistically significant evidence that changes in occupation, sector, or working time pattern influence this gender gap. The results highlight the importance of addressing gender disparities in the returns to job mobility and provide valuable evidence for developing policy interventions aimed at promoting more equitable labour market outcomes.