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Long-term effects of public policy for displaced workers in Sweden: Shipyard workers in the west and miners in the north

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Author Info

  • Henry Ohlsson
  • Donald Storrie

Abstract

Purpose – The purpose of this paper is to study the long-term effects of policy measures for displaced workers. The focus is on the individuals affected by the closure of the Uddevalla Shipyard in western Sweden in 1985 and the cutbacks at the LKAB mines in northern Sweden in 1983. Design/methodology/approach – These workers not only experienced job loss, but were also target groups for extraordinary labour market policies. Using register data from Statistics Sweden (labour market status, earnings, education etc.), the authors follow those affected until 1999, comparing their experiences with the development of a large sample of other workers who lost their jobs because of plant closures in 1987-1988 but who did not receive extraordinary measures. Findings – Estimations of the net effect of the extraordinary measures find that they did have positive long-term effects for the displaced shipyard workers and miners. They have higher employment, not higher unemployment, and higher earnings than the comparison group. Originality/value – The authors are not aware of any previous research on the effects of labour market policy addressing displacement in the long term.

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Bibliographic Info

Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

Volume (Year): 33 (2012)
Issue (Month): 5 (April)
Pages: 514-538

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Handle: RePEc:eme:ijmpps:v:33:y:2012:i:5:p:514-538

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Related research

Keywords: Cutbacks; Displacement; Involuntary job loss; Labour market policy; Mines; Plant closures; Public policy; Shipbuilding industry; Sweden; Unemployment;

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References

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  1. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
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  8. Marcus Eliason & Donald Storrie, 2006. "Lasting or Latent Scars? Swedish Evidence on the Long-Term Effects of Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 831-856, October.
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  13. Christian Dustmann & Costas Meghir, 1999. "Wages, experience and seniority," IFS Working Papers W99/01, Institute for Fiscal Studies.
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  17. Huttunen, Kristiina & Moen, Jarle & Salvanes, Kjell G., 2006. "How Destructive Is Creative Destruction? The Costs of Worker Displacement," IZA Discussion Papers 2316, Institute for the Study of Labor (IZA).
  18. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, issue Nov, pages 2-20.
  19. Martin Browning & Thomas F. Crossley, 2004. "Shocks, stocks and socks: smoothing consumption over a temporary income loss," CAM Working Papers 2004-05, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  20. Boheim, Rene & Taylor, Mark P., 2002. "The search for success: do the unemployed find stable employment?," Labour Economics, Elsevier, vol. 9(6), pages 717-735, December.
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