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The purpose of this paper is to clarify whether the age-productivity curve is different for low-waged and high-waged employees.

Productivity growth is decomposed at the firm level into contributions by hired, separated and staying workers. Based on a matched employer-employee database of Estonian firms from 2006 to 2014 and considering the age as well as wages of employees, a panel data model with fixed effects is constructed to show the relative productivity of each cohort of employees.

High-waged employees appeared to be relatively more productive than low-waged employees and middle-aged were more productive than young or old employees. However, the productivity difference between young and old employees was not statistically significant. The age-productivity curve of high-waged employees appeared to be flatter than that of low-waged employees. Only in knowledge intensive services were the low-waged old employees statistically significantly less productive than high-waged old employees. In the manufacturing industry, the young were more productive than in services, in knowledge intensive services the old were less productive than in traditional services.

The productivity of employees is only analysed for cohorts of employees.

Employers can be encouraged to hire older employees because old employees are shown to remain at least as productive as young employees.

The decomposition of labour productivity at the firm level is further developed, as the statistical difference between the productivity of different groups of employees is analysed.

The purpose of this paper is to examine how occupational mobility varies over the business cycle and how selected factors contribute to occupational mobility in different stages of the business cycle.

Using annual micro data from the Estonian Labour Force Survey (2001-2010) and implementing probit models with interaction terms, the paper investigates occupational mobility as a change of occupation in two successive years during recovery, boom and recession periods.

The analysis indicates that occupational mobility is higher during the recovery and boom periods and lower during the recession stage. The demographic characteristics (gender, marital status, knowledge of local language) influence the probability for occupational change during the recovery stage of the business cycle. The position of employees in the occupational hierarchy is significant during the recovery and boom periods. Employees working in the public sector have a lower probability for occupational change compared with private sector employees during the recession. Training has a positive effect on occupational mobility during recession. Tenure reduces the probability of occupational mobility over the whole business cycle.

The paper contributes to the literature by providing new results about the role of different factors of occupational mobility over the business cycle. This is among the few studies addressing the variation in the occupational mobility of employees from the public and private sectors. Interactions between the position of the employees in the occupational hierarchy and the ownership form of their employers and the economic sectors add to the understanding about the mechanism of occupational mobility over the business cycle stages.

Recent economic recession has highlighted the role of labour market flexibility as a key factor of competitiveness of a country. Despite the fact that labour mobility can essentially be seen as part of labour market flexibility, there is notable research gap concerning spatial mobility and other facets of labour market flexibility. The purpose of this special issue is to fill these gaps.

The papers in the special issue represent various quantitative methods and databases, whereas mainly micro data (workplace, labour force or immigrant surveys, job search portal, etc.) is used. However, the type of labour market flexibility addressed is both micro- and macro-level.

It is demonstrated that labour occupational mobility is determined by the business cycle, numerical flexibility, occupational categories, and sector. Spatial mobility may have counterintuitive effects on individual occupational mobility depending on gender and it is related to various flexibilities in the workplace. It is also suggested that different types of flexibilities on a firm level are interdependent of each other.

The special issue adds to the labour market related knowledge by integrating labour market flexibility and mobility. Individually, both phenomena have been studied before, but not much research is devoted to their inter-linkages. The special issue also contributes by examining labour market flexibility and spatial mobility in the context of different countries, economic cycles, and institutional settings.