Professor Jerome Adda, together with Christian Dastmann of University College London, discovered what drives wage growth for German workers. To do this, scientists studied information for several decades about the success of men from Germany in the labor market. Changing jobs, capital accumulation and skill levels turned out to have a positive impact on wages.
At the same time, all work tasks in labor market studies are divided into several types. Routine guide (RM) and cognitive summary (CA). The latter requires more creative and technical skills. Overall, the researchers found that skill accumulation was the most important factor in salary growth for performing both types of tasks over the course of a career.
These skills can be acquired during training, that is, before starting work. It is known that educated people can gain more experience with cognitive-abstract skills compared to uneducated employees. As a result, they not only make more money, they are also less likely to be unemployed and more likely to receive interesting job offers.
As for the transition from one job to another, then the salary increase occurs in the first years of the career, like the authors of the study note. Especially when you first move from an old job to a new job.
Source: Ferra
