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The Industrial Mobility of Displaced Workers

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  • Fallick, Bruce Chelimsky

Abstract

This article uses a two-industry model of unemployment duration and job search to estimate rates of transition of displaced workers from unemployment to employment, distinguishing between employment in a worker's previous industry and in other industries. The competing-risks model allows inferences about search strategies to be drawn from data concerning employment outcomes and allows tests of some fundamental implications of search theory. There is evidence that improvements in the prospects for employment in their previous industry induce displaced workers to reduce search intensity or increase reservation wages in other industries. Copyright 1993 by University of Chicago Press.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 11 (1993)
Issue (Month): 2 (April)
Pages: 302-23

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Handle: RePEc:ucp:jlabec:v:11:y:1993:i:2:p:302-23

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Web page: http://www.journals.uchicago.edu/JOLE/

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References

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  1. John M. Barron & Wesley Mellow, 1979. "Search Effort in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 389-404.
  2. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
  3. Bruce K. Fallick, 1988. "Job Search in More Than One Labor Market," UCLA Economics Working Papers 495, UCLA Department of Economics.
  4. Warner, John T & Poindexter, J Carl, Jr & Fearn, Robert M, 1980. "Employer-Employee Interaction and the Duration of Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 94(2), pages 211-33, March.
  5. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
  6. Linda S. Leighton & Jacob Mincer, 1982. "Labor Turnover and Youth Unemployment," NBER Working Papers 0378, National Bureau of Economic Research, Inc.
  7. Jerry Hausman & Aaron Han, 1986. "Semiparametric Estimation of Duration and Competing Risk Models," Working papers 450, Massachusetts Institute of Technology (MIT), Department of Economics.
  8. Martin Feldstein & James M. Poterba, 1984. "Unemployment Insurance and Reservation Wages," NBER Working Papers 1011, National Bureau of Economic Research, Inc.
  9. Gronau, Reuben, 1971. "Information and Frictional Unemployment," American Economic Review, American Economic Association, vol. 61(3), pages 290-301, June.
  10. Madden, Janice Fanning, 1987. "Gender Differences in the Cost of Displacement: An Empirical Test of Discrimination in the Labor Market," American Economic Review, American Economic Association, vol. 77(2), pages 246-51, May.
  11. Blau, David M. & Robins, Philip K., 1986. "Job search, wage offers, and unemployment insurance," Journal of Public Economics, Elsevier, vol. 29(2), pages 173-197, March.
  12. Barron, John M & McCafferty, Stephen, 1977. "Job Search, Labor Supply, and the Quit Decision: Theory and Evidence," American Economic Review, American Economic Association, vol. 67(4), pages 683-91, September.
  13. Linda Leighton & Jacob Mincer, 1982. "Labor Turnover and Youth Unemployment," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 235-276 National Bureau of Economic Research, Inc.
  14. Michael Podgursky & Paul Swaim, 1987. "Job displacement and earnings loss: Evidence from the Displaced Worker Survey," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(1), pages 17-29, October.
  15. Kathryn L. Shaw, 1985. "Occupational change, employer change, and the transferability of skills," Working Paper Series / Economic Activity Section 55, Board of Governors of the Federal Reserve System (U.S.).
  16. Kathryn L. Shaw, 1984. "A Formulation of the Earnings Function Using the Concept of Occupational Investment," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 319-340.
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Citations

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Cited by:
  1. Andrew Figura, 2003. "The effect of restructuring on unemployment," Finance and Economics Discussion Series 2003-56, Board of Governors of the Federal Reserve System (U.S.).
  2. Shin, Kwanho, 1997. "Sectoral shocks and movement costs: Effects on employment and welfare," Journal of Economic Dynamics and Control, Elsevier, vol. 21(2-3), pages 449-471.
  3. Randall W. Eberts & Christopher J. O'Leary, 2002. "A Frontline Decision Support System for Georgia Career Centers," Upjohn Working Papers and Journal Articles 02-84, W.E. Upjohn Institute for Employment Research.
  4. Joanne Kathryn Lindley & Marius Brullhart & Rob Elliott, 2005. "Intra-industry trade and labour market adjustment: A reassessment using data on individual workers," Working Papers 2005005, The University of Sheffield, Department of Economics, revised May 2005.
  5. Tsou, Meng-Wen & Liu, Jin-Tan & Hammitt, James K. & Chang, Ching-Fu, 2013. "The impact of foreign direct investment in China on employment adjustments in Taiwan: Evidence from matched employer–employee data," Japan and the World Economy, Elsevier, vol. 25, pages 68-79.
  6. Chen, Ming-Yuan, 2002. "Survival duration of plants: Evidence from the US petroleum refining industry," International Journal of Industrial Organization, Elsevier, vol. 20(4), pages 517-555, April.
  7. Strauss, Jack, 1997. "The influence of traded and nontraded wages on relative prices and real exchange rates," Economics Letters, Elsevier, vol. 55(3), pages 391-395, September.
  8. Drinkwater, Stephen & Latreille, Paul L. & Knight, Ben, 2008. "When It's (Mostly) the Taking Part that Counts: The Post-Application Consequences of Employment Tribunal Claims," IZA Discussion Papers 3629, Institute for the Study of Labor (IZA).
  9. Yolanda K. Kodrzycki, 1998. "Effects of employer-provided severance benefits on reemployment outcomes," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 41-68.
  10. Vilhuber, Lars, 2001. "La spécificité de la formation en milieu de travail : un survol des contributions théoriques et empiriques récentes," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(1), pages 133-167, mars.
  11. Randall W. Eberts & Christopher J. O'Leary & Kelly DeRango, 2002. "A Frontline Decision Support System for One-Stop Centers," Book chapters authored by Upjohn Institute researchers, in: Randall W. Eberts & Christopher J. O'Leary & Stephen A. Wandner (ed.), Targeting Employment Services, chapter 12, pages 337-379 W.E. Upjohn Institute for Employment Research.
  12. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.

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