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Switching jobs is a great way to get pay raise except when economy is recovering
- nostrademons 10y agoThis data seems suspect unless they controlled for voluntary vs. involuntary job losses. The Fed chart shows median wage growth among two populations. It could be that during the recession, job-switchers are disproportionately laid off, either because they're viewed as going to leave anyway, or because they have shorter tenures at the firm. They would then be disproportionately represented among the involuntarily-unemployed seeking to return to work as the recession clears. Involuntary unemployment puts you in a much weaker negotiating position when seeking your next job, because you have no BATNA. It could be that switching jobs always gets you a bigger pay raise, but that it also means a bigger chance of a dramatic pay cut when layoffs occur. This'd make it a typical risk/reward trade-off.