This paper uses panel data from the UK (BHPS) and Germany (GSOEP) to investigate the wage effect of entering the labour market with a temporary job. Further than the previous literature that studied the effect of the contract type on wage dynamics in the explained part of a wage regression, we...

Studies have shown that voluntary job-to-job changes have a positive effect on wage growth. This paper argues that the impact of a job change on wage mobility depends on the position in the wage distribution. Using panel date from the UK and Germany, we show that a change of employer results...