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Changes in earnings instability and job loss

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  • Ann Huff Stevens

Abstract

This paper examines the contribution of job loss or displacement to increasing male earnings instability between 1970 and 1991. Earnings instability increased among both displaced and not-displaced men, so changes associated with job loss cannot fully explain rising instability. Changes in the incidence and consequences of job loss did, however, add substantially to growing earnings instability and to the overall variance of earnings. There is evidence that displacement substantially raised earnings volatility for several years after job loss. That effect, combined with increased numbers of recently displaced workers in the 1980s relative to the previous decade, contributed to rising overall earnings instability. (Author's abstract.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 55 (2001)
Issue (Month): 1 (October)
Pages: 60-78

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Handle: RePEc:ilr:articl:v:55:y:2001:i:1:p:60-78

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Cited by:
  1. Morissette, Rene & Ostrovsky, Yuri, 2008. "Comment les familles et les personnes seules reagissent-elles aux licenciements? Un eclairage canadien," Direction des etudes analytiques : documents de recherche 2008304f, Statistics Canada, Direction des etudes analytiques.
  2. Peter Gottschalk & Robert Moffitt, 2009. "The Rising Instability of U.S. Earnings," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 23(4), pages 3-24, Fall.
  3. Huttunen, Kristiina & Kellokumpu, Jenni, 2012. "The Effect of Job Displacement on Couples' Fertility Decisions," IZA Discussion Papers 6707, Institute for the Study of Labor (IZA).
  4. Shin, Donggyun & Solon, Gary, 2011. "Trends in men's earnings volatility: What does the Panel Study of Income Dynamics show?," Journal of Public Economics, Elsevier, Elsevier, vol. 95(7-8), pages 973-982, August.
  5. Morissette, Rene & Ostrovsky, Yuri, 2008. "How Do Families and Unattached Individuals Respond to Layoffs? Evidence from Canada," Analytical Studies Branch Research Paper Series 2008304e, Statistics Canada, Analytical Studies Branch.
  6. Cappellari, Lorenzo & Leonardi, Marco, 2007. "Earnings instability and tenure," ISER Working Paper Series 2007-04, Institute for Social and Economic Research.
  7. Matthew Rutledge, 2011. "Long-Run Earnings Volatility and Health Insurance Coverage: Evidence from the SIPP Gold Standard File," Working Papers 11-35, Center for Economic Studies, U.S. Census Bureau.
  8. Laura Hospido, 2009. "Job changes and individual-job specific wage dynamics," Banco de Espa�a Working Papers 0907, Banco de Espa�a.
  9. Hugo Benitez-Silva, 2000. "Micro Determinants of Labor Force Status Among Older Americans," Department of Economics Working Papers, Stony Brook University, Department of Economics 00-07, Stony Brook University, Department of Economics.

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