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Moving Up or Moving On, Fredrik Andersson, Harry Holzer, and Julia
Lane examine the characteristics of both employees and employers
that lead to positive outcomes for workers. Using new Census data,
Moving Up or Moving On follows a group of low earners over a
nine-year period to analyze the behaviors and characteristics of
individuals and employers that lead workers to successful career
outcomes. The authors find that, in general, workers who moved on
to different employers fared better than those who tried to move up
within the same firm. While changing employers meant losing
valuable job tenure and spending more time out of work than those
who stayed put, workers who left their jobs in search of better
opportunity elsewhere ended up with significantly higher earnings
in the long term in large part because they were able to find
employers that paid better wages and offered more possibilities for
promotion. Yet moving on to better jobs is difficult for many of
the working poor because they lack access to good-paying firms.
Andersson, Holzer, and Lane demonstrate that low-wage workers tend
to live far from good paying employers, making an improved
transportation infrastructure a vital component of any public
policy to improve job prospects for the poor. Labor market
intermediaries can also help improve access to good employers. The
authors find that one such intermediary, temporary help agencies,
improved long-term outcomes for low-wage earners by giving them
exposure to better-paying firms and therefore the opportunity to
obtain better jobs. Taken together, these findings suggest that
public policy can best serve the working poor by expanding their
access to good employers, assisting them with job training and
placement, and helping them to prepare for careers that combine
both mobility and job retention strategies. Moving Up or Moving On
offers a compelling argument about how low-wage workers can achieve
upward mobility, and how public policy can facilitate the process.
Clearly written and based on an abundance of new data, this book
provides concrete, practical answers to the large questions
surrounding the low-wage labor market."
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