Job Change and Job Stability among Less-Skilled Young Workers

In this paper we review evidence from previous studies of job and employment instability among less-educated young workers, and we provide new evidence from the National Longitudinal Survey of Youth. We find that early employment instability contributes somewhat to the low levels of employment observed among high school dropouts, especially females. Important determinants of job stability include the cognitive skills of the workers themselves (as measured by math test scores), current or previous experience and job tenure, and a variety of job characteristics including starting wages, occupation, and industry. Job instability among female dropouts seems to be strongly related to fertility history and marital status. Some implications for policy, especially welfare reform, are discussed as well.