IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v21y2021i1p335-378n8.html
   My bibliography  Save this article

Changes Over Time in the Cost of Job Loss for Young Men and Women

Author

Listed:
  • Barnette Justin
  • Reynolds C. Lockwood

    (Department of Economics, Kent State University, Kent, USA)

  • Odongo Kennedy

    (Department of Economics, Washington State University, Pullman, USA)

Abstract

Using data from the two cohorts of the NLSY, we examine whether income losses due to involuntary job separations have changed over time. We find that wage losses among men are similar between the two cohorts. However, women in the 1979 cohort show little evidence of wage losses while women in the 1997 cohort experience wage losses similar to those of men. We present evidence that changes in occupations across cohorts help explain these results.

Suggested Citation

  • Barnette Justin & Reynolds C. Lockwood & Odongo Kennedy, 2021. "Changes Over Time in the Cost of Job Loss for Young Men and Women," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 335-378, January.
    • Handle: RePEc:bpj:bejeap:v:21:y:2021:i:1:p:335-378:n:8
    DOI: 10.1515/bejeap-2020-0005
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/bejeap-2020-0005
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/bejeap-2020-0005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nicholas A. Jolly & Brian J. Phelan, 2017. "The Long-Run Effects of Job Displacement on Sources of Health Insurance Coverage," Journal of Labor Research, Springer, vol. 38(2), pages 187-205, June.
    2. Joseph G. Altonji & Prashant Bharadwaj & Fabian Lange, 2012. "Changes in the Characteristics of American Youth: Implications for Adult Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 783-828.
    3. A. Jolly Nicholas, 2015. "Geographic Mobility and the Costs of Job Loss," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(4), pages 1793-1829, October.
    4. Bradley T. Heim, 2007. "The Incredible Shrinking Elasticities: Married Female Labor Supply, 1978–2002," Journal of Human Resources, University of Wisconsin Press, vol. 42(4).
    5. Christopher Huckfeldt, 2018. "Understanding the Scarring Effect of Recessions," 2018 Meeting Papers 1207, Society for Economic Dynamics.
    6. Lori G. Kletzer & Robert W. Fairlie, 2003. "The Long-Term Costs of Job Displacement for Young Adult Workers," ILR Review, Cornell University, ILR School, vol. 56(4), pages 682-698, July.
    7. Claudia Goldin, 2006. "The Quiet Revolution That Transformed Women's Employment, Education, and Family," American Economic Review, American Economic Association, vol. 96(2), pages 1-21, May.
    8. Marigee P. Bacolod & Bernardo S. Blum, 2010. "Two Sides of the Same Coin: U.S. "Residual" Inequality and the Gender Gap," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    9. Thomas A. Mroz & Timothy H. Savage, 2006. "The Long-Term Effects of Youth Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    10. Melvin Stephens, 2002. "Worker Displacement and the Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 504-537, July.
    11. Jolly, Nicholas A. & Phelan, Brian J., 2015. "Job displacement’s long-run effect on access to employer-provided health insurance and other fringe benefits," Economics Letters, Elsevier, vol. 130(C), pages 100-104.
    12. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    13. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 75-99, Fall.
    14. Henry S. Farber, 2015. "Job Loss in the Great Recession and its Aftermath: U.S. Evidence from the Displaced Workers Survey," NBER Working Papers 21216, National Bureau of Economic Research, Inc.
    15. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    16. William J. Carrington & Bruce Fallick, 2017. "Why Do Earnings Fall with Job Displacement?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 688-722, October.
    17. David T. Ellwood, 1982. "Teenage Unemployment: Permanent Scars or Temporary Blemishes?," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 349-390, National Bureau of Economic Research, Inc.
    18. Henry S. Farber, 2015. "Job Loss in the Great Recession and its Aftermath: U.S. Evidence from the Displaced Workers Survey," Working Papers 589, Princeton University, Department of Economics, Industrial Relations Section..
    19. Francine D. Blau & Lawrence M. Kahn, 2007. "Changes in the Labor Supply Behavior of Married Women: 1980–2000," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 393-438.
    20. Shintaro Yamaguchi, 2018. "Changes in Returns to Task-Specific Skills and Gender Wage Gap," Journal of Human Resources, University of Wisconsin Press, vol. 53(1), pages 32-70.
    21. Goldin, Claudia, 2006. "The Quiet Revolution That Transformed Women’s Employment, Education, and Family," Scholarly Articles 2943933, Harvard University Department of Economics.
    22. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    23. Farber, Henry S, 2015. "Job Loss in the Great Recession and its Aftermath: U.S. Evidence from the Displaced Workers Survey," IZA Discussion Papers 9069, Institute of Labor Economics (IZA).
    24. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-188, January.
    25. Michael F. Lovenheim & C. Lockwood Reynolds, 2011. "Changes in Postsecondary Choices by Ability and Income: Evidence from the National Longitudinal Surveys of Youth," Journal of Human Capital, University of Chicago Press, vol. 5(1), pages 70-109.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carolina Caetano & Brantly Callaway, 2022. "Difference-in-Differences with Time-Varying Covariates in the Parallel Trends Assumption," Papers 2202.02903, arXiv.org, revised May 2023.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ina GANGULI & Ricardo HAUSMANN & Martina VIARENGO, 2014. "Closing the gender gap in education: What is the state of gaps in labour force participation for women, wives and mothers?," International Labour Review, International Labour Organization, vol. 153(2), pages 173-207, June.
    2. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    3. Jon Ellingsen & Caroline Espegren, 2022. "Lost in transition? Earnings losses of displaced petroleum workers," Working Papers No 06/2022, Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School.
    4. Patrick Bennett, 2021. "The Work-To-School Transitions:Job Displacement and Skill Upgrading among Young High School Dropouts," Working Papers 202205, University of Liverpool, Department of Economics.
    5. Jacqueline Mosomi, 2019. "Distributional changes in the gender wage gap in the post-apartheid South African labour market," WIDER Working Paper Series wp-2019-17, World Institute for Development Economic Research (UNU-WIDER).
    6. William J. Carrington & Bruce Fallick, 2017. "Why Do Earnings Fall with Job Displacement?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 688-722, October.
    7. Ulf Nielsson & Herdis Steingrimsdottir, 2018. "The signalling value of education across genders," Empirical Economics, Springer, vol. 54(4), pages 1827-1854, June.
    8. Barigozzi, Francesca & Cremer, Helmuth & Roeder, Kerstin, 2020. "Having it all, for all: Child-care subsidies and income distribution reconciled," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 188-211.
    9. Mattia Filomena, 2021. "Unemployment Scarring Effects: A Symposium On Empirical Literature," Working Papers 453, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    10. Sudipto Banerjee & David Blau, 2016. "Employment Trends by Age in the United States: Why Are Older Workers Different?," Journal of Human Resources, University of Wisconsin Press, vol. 51(1), pages 163-199.
    11. Chen Huang, 2018. "Why Are U.S. Women Decreasing Their Labor Force Participation If Their Wages Are Rising?," Economic Inquiry, Western Economic Association International, vol. 56(4), pages 2010-2026, October.
    12. Barnette, Justin, 2020. "Wealth After Job Displacement," MPRA Paper 103642, University Library of Munich, Germany.
    13. Christina Boll & Malte Jahn & Andreas Lagemann, 2017. "The gender lifetime earnings gap—exploring gendered pay from the life course perspective," Journal of Income Distribution, Ad libros publications inc., vol. 25(1), pages 1-53, March.
    14. Borghorst, Malte & Mulalic, Ismir & van Ommeren, Jos, 2021. "Commuting, Children and the Gender Wage Gap," Working Papers 15-2021, Copenhagen Business School, Department of Economics.
    15. Gianni De Fraja & Sara Lemos & James Rockey, 2021. "The Wounds That Do Not Heal: The Lifetime Scar of Youth Unemployment," Economica, London School of Economics and Political Science, vol. 88(352), pages 896-941, October.
    16. Ariane Aumaitre, 2022. "Three Tales of Gender Equality in a Post-Industrial World," LIS Working papers 849, LIS Cross-National Data Center in Luxembourg.
    17. Mennuni, Alessandro, 2019. "The aggregate implications of changes in the labour force composition," European Economic Review, Elsevier, vol. 116(C), pages 83-106.
    18. Christopher Huckfeldt, 2022. "Understanding the Scarring Effect of Recessions," American Economic Review, American Economic Association, vol. 112(4), pages 1273-1310, April.
    19. Warn N. Lekfuangfu & Grace Lordan, 2023. "Documenting occupational sorting by gender in the UK across three cohorts: does a grand convergence rely on societal movements?," Empirical Economics, Springer, vol. 64(5), pages 2215-2256, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:21:y:2021:i:1:p:335-378:n:8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.