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and wages are recorded at each interview. Therefore, we count job separations over the
period between two interviews. If a person is between jobs at the time of an interview, the
separation is assigned to the interview year when he starts his next job.
One issue that arises when computing job turnover is determining which job changes
to count. Many people in the sample hold more than one job at a time, or leave a job
but return to it later. For our purposes, we decide not to count jobs that are obviously
second jobs - that is, jobs that begin after and end before another job. It is reasonable to
expect that these jobs would have little effect on wage growth, since they are not primary
jobs. However, if a person leaves a job for three or more weeks, we count this as a job
separation even if he eventually returns to it. The reasoning is that people often hold a
job or search for another job while they are away from this employer, so returning to a
job might represent job shopping that didn't work out. The results are not sensitive to
whether or not these breaks in a single job are counted as separations.
To check the robustness of the results in the NLSY, we use the data from the March
annual demographic supplement to the Current Population Survey. The data used was
collected annually between 1964 and 1996. Because we are trying to get results comparable
to the NLSY, we use only people born from 1957-1964. We exclude anyone who is still in
school, or who has more than 12 years of education. The data on earnings, weeks worked,
and hours worked refer to the calendar year preceding the March of the interview. Again,
we look at workers who have been in the labor force ten or fewer years.
Because the CPS is a random sample each year, rather than a panel, actual work
experience is not available. We impute actual experience using average weeks worked for
various demographic and age groups. We break the sample into cells based on gender, race,
level of education (12, 11, 10, 9 or less) and year of birth. We then use the CPS to compute
average weeks worked for these cells at each age. Actual experience is defined as the sum of
these averages in each year since a person left school. Thus, for a 20 year-old born in 1963
and observed in the 1983 CPS, actual experience would be defined as the sum of average
weeks worked by 18-year olds in his demographic group born in 1963 and observed in the
1981 CPS, and average weeks worked by 19-year olds from his demographic group born in
1963 and observed in the 1982 CPS.We discuss this imputation further below.
5
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"ocrText": "JUL-03-2000 12:14\nUMB DEP DIR MGMT\n202 395 6974 P.09/37\nand wages are recorded at each interview. Therefore, we count job separations over the\nperiod between two interviews. If a person is between jobs at the time of an interview, the\nseparation is assigned to the interview year when he starts his next job.\nOne issue that arises when computing job turnover is determining which job changes\nto count. Many people in the sample hold more than one job at a time, or leave a job\nbut return to it later. For our purposes, we decide not to count jobs that are obviously\nsecond jobs - that is, jobs that begin after and end before another job. It is reasonable to\nexpect that these jobs would have little effect on wage growth, since they are not primary\njobs. However, if a person leaves a job for three or more weeks, we count this as a job\nseparation even if he eventually returns to it. The reasoning is that people often hold a\njob or search for another job while they are away from this employer, so returning to a\njob might represent job shopping that didn't work out. The results are not sensitive to\nwhether or not these breaks in a single job are counted as separations.\nTo check the robustness of the results in the NLSY, we use the data from the March\nannual demographic supplement to the Current Population Survey. The data used was\ncollected annually between 1964 and 1996. Because we are trying to get results comparable\nto the NLSY, we use only people born from 1957-1964. We exclude anyone who is still in\nschool, or who has more than 12 years of education. The data on earnings, weeks worked,\nand hours worked refer to the calendar year preceding the March of the interview. Again,\nwe look at workers who have been in the labor force ten or fewer years.\nBecause the CPS is a random sample each year, rather than a panel, actual work\nexperience is not available. We impute actual experience using average weeks worked for\nvarious demographic and age groups. We break the sample into cells based on gender, race,\nlevel of education (12, 11, 10, 9 or less) and year of birth. We then use the CPS to compute\naverage weeks worked for these cells at each age. Actual experience is defined as the sum of\nthese averages in each year since a person left school. Thus, for a 20 year-old born in 1963\nand observed in the 1983 CPS, actual experience would be defined as the sum of average\nweeks worked by 18-year olds in his demographic group born in 1963 and observed in the\n1981 CPS, and average weeks worked by 19-year olds from his demographic group born in\n1963 and observed in the 1982 CPS.We discuss this imputation further below.\n5"
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