Explaining Wage Losses after Job Displacement: Employer Size and Lost Firm Wage Premiums

2021 ◽  
Author(s):  
Daniel Fackler ◽  
Steffen Mueller ◽  
Jens Stegmaier
Keyword(s):  
Administrative Data ◽  
Fixed Effects ◽  
Job Displacement ◽  
Worker Productivity ◽  
Wage Premiums

Abstract This paper investigates whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity depreciations. We estimate losses in wages and firm wage premiums, the latter being measured as firm effects from a two-way fixed-effects wage decomposition. Using new German administrative data on displacements from small and large employers, we find that wage losses are to a large extent explained by losses in firm wage premiums and that premium losses are largely permanent. We show that losses strongly increase with pre-displacement employer size. This provides an explanation for large and persistent wage losses reported in previous displacement studies typically focusing on large employers, only.

scholarly journals Three Essays on Adverse Events and Student Outcomes

2021 ◽  
Author(s):  
◽  
Olivia Wills
Keyword(s):  
High School ◽  
High School Students ◽  
Adverse Events ◽  
Administrative Data ◽  
Degree Completion ◽  
Student Outcomes ◽  
Fixed Effects ◽  
Hospital Admissions ◽  
The Impact ◽  
Low Ability

<p>This dissertation contains three essays on the impact of unexpected adverse events on student outcomes. All three attempt to identify causal inference using plausibly exogenous shocks and econometric tools, applied to rich administrative data.  In Chapter 2, I present evidence of the causal effects of the 2011 Christchurch earthquake on tertiary enrolment and completion. Using the shock of the 2011 earthquake on high school students in the Canterbury region, I estimate the effect of the earthquake on a range of outcomes including tertiary enrolment, degree completion and wages. I find the earthquake causes a substantial increase in tertiary enrolment, particularly for low ability high school leavers from damaged schools. However, I find no evidence that low ability students induced by the earthquake complete a degree on time.  In Chapter 3, I identify the impact of repeat disaster exposure on university performance, by comparing outcomes for students who experience their first earthquake while in university, to outcomes for students with prior earthquake exposure. Using a triple-differences estimation strategy with individual-by-year fixed effects, I identify a precise null effect, suggesting that previous experience of earthquakes is not predictive of response to an additional shock two years later.  The final chapter investigates the impact of injuries sustained in university on academic performance and wages, using administrative data including no-fault insurance claims, emergency department attendance and hospital admissions, linked with tertiary enrolment. I find injuries, including minor injuries, have a negative effect on re-enrolment, degree completion and grades in university.</p>

scholarly journals Long Term Effects of Job Displacement. Paper presented at the 2010 American Sociological Association Annual Meeting.

2017 ◽  
Author(s):  
Matthew J Moehr
Keyword(s):  
Labor Market ◽  
Fixed Effects ◽  
Structural Changes ◽  
Panel Study ◽  
Job Displacement ◽  
Long Term Effects ◽  
Fixed Effects Models ◽  
Worker Characteristics ◽  
Using Data

This paper replicates and extends Stevens’s (1997) analysis of the long-term effects of job displacements. Using data from the 1968-2005 waves of the Panel Study of Income Dynamics, I estimate fixed-effects models which show that there are long term decreases in earnings after displacements. The decreases are mediated when longer follow up data is used for individuals. Changes in the labor market have also shifted the relationship between displacements and individual worker characteristics. Specifically, education and experience have become more important then displacements. Conclusions are based on an analysis of the different people in the 40 years of PSID data and the structural changes in the labor market over that time. This article suggests that longitudinal data and fixed-effects models are one of many ways to conceptualize labor market changes.

scholarly journals Earnings Losses of Displaced Workers Revisited

2010 ◽  
Vol 100 (1) ◽  
pp. 572-589 ◽  
Author(s):  
Kenneth A Couch ◽  
Dana W Placzek
Keyword(s):  
Administrative Data ◽  
Unemployment Insurance ◽  
Fixed Effects ◽  
Panel Study ◽  
Displaced Workers ◽  
Income Dynamics ◽  
Matching Estimators ◽  
Earnings Losses ◽  
Random Growth ◽  
Mass Layoff

Earnings losses of Connecticut workers affected by mass layoff are calculated using administrative data. Estimated reductions are initially more than 30 percent and six years later, as much as 15 percent. The Connecticut estimates are smaller than comparable ones from Pennsylvania administrative data but similar to those from the Panel Study of Income Dynamics (PSID) and Department of Workforce Services (DWS). Earnings reductions in Connecticut and Pennsylvania are concentrated among Unemployment Insurance recipients. An unusually high proportion of Unemployment Insurance beneficiaries in Pennsylvania explains the larger estimated losses relative to other studies. Fixed-effects, random growth, and matching estimators produced similar earnings loss estimates suggesting each is relatively unbiased in this context.

scholarly journals Workplace Heterogeneity and the Rise of West German Wage Inequality*

2013 ◽  
Vol 128 (3) ◽  
pp. 967-1015 ◽  
Author(s):  
David Card ◽  
Jörg Heining ◽  
Patrick Kline
Keyword(s):  
Wage Inequality ◽  
Fixed Effects ◽  
Wage Structure ◽  
Three Dimensions ◽  
Job Match ◽  
Wage Premiums ◽  
Dramatic Rise ◽  
Plant Level ◽  
Wage Variation ◽  
Education Groups

Abstract We study the role of establishment-specific wage premiums in generating recent increases in West German wage inequality. Models with additive fixed effects for workers and establishments are fit into four subintervals spanning the period from 1985 to 2009. We show that these models provide a good approximation to the wage structure and can explain nearly all of the dramatic rise in West German wage inequality. Our estimates suggest that the increasing dispersion of West German wages has arisen from a combination of rising heterogeneity between workers, rising dispersion in the wage premiums at different establishments, and increasing assortativeness in the assignment of workers to plants. In contrast, the idiosyncratic job-match component of wage variation is small and stable over time. Decomposing changes in mean wages between different education groups, occupations, and industries, we find that increasing plant-level heterogeneity and rising assortativeness in the assignment of workers to establishments explain a large share of the rise in inequality along all three dimensions.

Job Displacement and Mortality: An Analysis Using Administrative Data*

2009 ◽  
Vol 124 (3) ◽  
pp. 1265-1306 ◽  
Author(s):  
Daniel Sullivan ◽  
Till von Wachter
Keyword(s):  
Administrative Data ◽  
Job Displacement

Immigrant diversity, integration and worker productivity: uncovering the mechanisms behind ‘diversity spillover’ effects

2021 ◽  
Vol 21 (2) ◽  
pp. 261-285 ◽  
Author(s):  
Maximilian Buchholz
Keyword(s):  
Problem Solving ◽  
Fixed Effects ◽  
Spillover Effects ◽  
Foreign Born ◽  
Worker Productivity ◽  
Positive Effects ◽  
The Usa ◽  
Urban Level ◽  
Level I ◽  
The Relationship

Abstract A growing body of research is demonstrating a robust positive relationship between the diversity of a city’s foreign-born population in the USA and worker productivity. Other research has focused on diversity within firms, similarly finding positive effects in many cases. Although it appears that diverse teams within firms are better at problem-solving and are more creative, the exact mechanism(s) that drive the relationship between diversity and productivity at the scale of city-regions are less apparent and underexplored in extant research. Drawing on research from several fields, I describe four mechanisms that might drive the relationship between immigrant diversity and productivity at the urban level. I explore each mechanism with a pseudo panel of workers and fixed effects OLS regressions across U.S. Metropolitan Statistical Areas between 2011 and 2017. The results most strongly support that at the urban level, diversity enhances productivity through what I call ‘exposure effects’ and ‘interactive problem-solving’, wherein workers become more productive and more creative through exposure to new cultures and ways of thinking and through joint problem-solving. These results suggest that positive externalities arise when coupling rising immigrant diversity with the social integration of people from diverse backgrounds.

scholarly journals Three Essays on Adverse Events and Student Outcomes

2021 ◽  
Author(s):  
◽  
Olivia Wills
Keyword(s):  
High School ◽  
High School Students ◽  
Adverse Events ◽  
Administrative Data ◽  
Degree Completion ◽  
Student Outcomes ◽  
Fixed Effects ◽  
Hospital Admissions ◽  
The Impact ◽  
Low Ability

<p>This dissertation contains three essays on the impact of unexpected adverse events on student outcomes. All three attempt to identify causal inference using plausibly exogenous shocks and econometric tools, applied to rich administrative data.  In Chapter 2, I present evidence of the causal effects of the 2011 Christchurch earthquake on tertiary enrolment and completion. Using the shock of the 2011 earthquake on high school students in the Canterbury region, I estimate the effect of the earthquake on a range of outcomes including tertiary enrolment, degree completion and wages. I find the earthquake causes a substantial increase in tertiary enrolment, particularly for low ability high school leavers from damaged schools. However, I find no evidence that low ability students induced by the earthquake complete a degree on time.  In Chapter 3, I identify the impact of repeat disaster exposure on university performance, by comparing outcomes for students who experience their first earthquake while in university, to outcomes for students with prior earthquake exposure. Using a triple-differences estimation strategy with individual-by-year fixed effects, I identify a precise null effect, suggesting that previous experience of earthquakes is not predictive of response to an additional shock two years later.  The final chapter investigates the impact of injuries sustained in university on academic performance and wages, using administrative data including no-fault insurance claims, emergency department attendance and hospital admissions, linked with tertiary enrolment. I find injuries, including minor injuries, have a negative effect on re-enrolment, degree completion and grades in university.</p>

Race and Rehiring in the High-Tech Industry

1994 ◽  
Vol 22 (3) ◽  
pp. 43-54 ◽  
Author(s):  
Don Mar ◽  
Paul M. Ong
Keyword(s):  
Administrative Data ◽  
Racial Inequality ◽  
Semiconductor Industry ◽  
Unemployment Duration ◽  
High Tech ◽  
Job Displacement ◽  
Black Workers ◽  
Firm Characteristics ◽  
Downward Mobility ◽  
High Tech Industry

Previous research reveals that economic dislocation generates racial inequality because minorities suffer greater consequences from job displacement—longer unemployment duration and greater downward mobility. These outcomes, however, are conditional on being permanently laid off. This article examines the factors, including race, that influence whether or not a worker becomes displaced. More specifically, the article analyzes the probability of being rehired after an initial layoff using administrative data collected on workers laid off after the severe 1985 sectoral recession in Silicon Valley's semiconductor industry. The results from logit regressions show that, after controlling for observable worker and firm characteristics, black workers are less likely to be rehired than other workers.

scholarly journals The Disappearing Large-Firm Wage Premium

2018 ◽  
Vol 108 ◽  
pp. 317-322 ◽  
Author(s):  
Nicholas Bloom ◽  
Fatih Guvenen ◽  
Benjamin S. Smith ◽  
Jae Song ◽  
Till von Wachter
Keyword(s):  
Administrative Data ◽  
Firm Size ◽  
Fixed Effects ◽  
Large Firm ◽  
Wage Premium ◽  
Large Firms ◽  
Dramatic Decline

Large firms have paid significantly higher wages for over a century. Based on administrative data we document that the large-firm wage premium (LFWP) has declined steadily over the last 30 years. Decomposing pay into worker and firm fixed effects, we then document that the LFWP can be largely explained by a rise in firm effects with firm size. The dramatic decline is due a reduction in these firm effects at large firms. These changes have been concentrated at very large employers. In contrast, worker composition has changed little. We also find the majority of the change occurs within industries.

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