Earnings losses are relatively small, but less so for older and low-educated Finnish displaced workers

2016 ◽  
Keyword(s):  
Displaced Workers ◽  
Earnings Losses ◽  
Low Educated

scholarly journals Job Ladders and Earnings of Displaced Workers

2017 ◽  
Vol 9 (2) ◽  
pp. 1-31 ◽  
Author(s):  
Pawel Krolikowski
Keyword(s):  
Displaced Workers ◽  
Job Displacement ◽  
Wage Dispersion ◽  
Earnings Losses ◽  
Displaced Worker

Workers who suffer job displacement experience surprisingly large and persistent earnings losses. This paper proposes an explanation for this robust empirical puzzle in a model of search with a significant job ladder and increased separation rates for the recently hired. In addition to capturing the depth and persistence of displaced worker earnings losses, the model matches: employment-to-nonemployment and employer-to-employer probabilities by tenure; the empirical decomposition of earnings losses into reduced wages and employment; observed wage dispersion; and the distribution of wage changes around a nonemployment event. (JEL J31, J63, J64)

Earnings Losses and Unemployment of Displaced Workers in Germany

ILR Review ◽  
2001 ◽  
Vol 54 (3) ◽  
pp. 559 ◽  
Author(s):  
Kenneth A. Couch
Keyword(s):  
Displaced Workers ◽  
Earnings Losses

scholarly journals Geographic Mobility and the Costs of Job Loss

2015 ◽  
Vol 15 (4) ◽  
pp. 1793-1829 ◽  
Author(s):  
Nicholas A. Jolly
Keyword(s):  
Job Loss ◽  
Panel Study ◽  
Displaced Workers ◽  
Early Years ◽  
Geographic Mobility ◽  
Lower Probability ◽  
Income Dynamics ◽  
Earnings Losses ◽  
Loss Experience

Abstract This paper uses data from the 1968 through 1997 survey waves of the Panel Study of Income Dynamics to analyze how the long-term costs of job loss vary by a worker’s post-displacement migration status. Results from the analysis show that those individuals who move within the first 2 years after a job loss experience lower earnings losses, lower reductions in hours worked, and smaller increases in time unemployed when compared to a group of displaced workers who are not geographically mobile during the early years following this life event. Workers who move within the first 2 years after displacement face a lower probability of homeownership when compared to their non-mobile counterparts. However, this lower probability is short-lived.

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 Earnings Losses of Displaced Workers

1992 ◽  
Author(s):  
Louis S. Jacobson ◽  
Robert John LaLonde ◽  
Daniel Gerard Sullivan
Keyword(s):  
Displaced Workers ◽  
Earnings Losses

scholarly journals Reconsidering the Consequences of Worker Displacements: Firm versus Worker Perspective

2019 ◽  
Vol 11 (2) ◽  
pp. 193-227 ◽  
Author(s):  
Aaron Flaaen ◽  
Matthew D. Shapiro ◽  
Isaac Sorkin
Keyword(s):  
Survey Data ◽  
Administrative Data ◽  
Displaced Workers ◽  
Economic Distress ◽  
Earnings Dynamics ◽  
Mass Layoffs ◽  
Earnings Losses ◽  
Prior Literature ◽  
Survey Responses ◽  
Mass Layoff

Prior literature has established that displaced workers suffer persistent earnings losses by following workers in administrative data after mass layoffs. This literature assumes that these are involuntary separations owing to economic distress. This paper examines this assumption by matching survey data on worker-supplied reasons for separations with administrative data. Workers exhibit substantially different earnings dynamics in mass layoffs depending on the reason for separation. Using a new methodology to account for the increased separation rates across all survey responses during a mass layoff, the paper finds earnings loss estimates that are surprisingly close to those using only administrative data. (JEL E32, J31, J63, J64, J65)

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