Need a Raise in 2015? Try Changing Jobs

 Kansas City Fed economist José Mustre-del-Río writes in a new research paper:

Unlike wages of stayers, wages of switchers are much more cyclically sensitive, as contracts signed with new employers are more likely to reflect current economic conditions.We find that switchers’ wage growth has been quite strong the past several quarters as the labor market continues to tighten...As the labor market continues to tighten and turnover continues to rise, these trends should become more broad-based.

Job switchers’ average wage growth rose from around 4.3% per quarter in the first quarter of 2013 to 5.6% in the third quarter of 2014, the study found.

Note: This makes common sense. If someone has a job, it will generally take a significantly higher salary to cause him to switch. And, during the manipulated boom period, such as we have now, the Fed is pumping money into new sectors that have the funds to bid employees away from old sectors.

(via WSJ)