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Lasting or Latent Scars? Swedish Evidence on the Long-Term Effects of Job Displacement

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Author Info
Marcus Eliason (CELMS (Centre for European Labour Market Studies), Department of Economics, Göteborg University)
Donald Storrie (European Foundation for the Improvement of Living and Working Conditions and CELMS, Department of Economics, Göteborg University)

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Abstract

Recently improved Swedish register data have made it possible to remedy many weaknesses of previous research on displaced workers. Using linked employer-employee data, we identify all workers displaced in 1987, due to an establishment closure, and follow them over both a predisplacement period of 4 years and a postdisplacement period stretching until 1999. We find that the displaced workers suffer both earnings losses and worsened labor-market position not only during a transitory period of adjustment but also in the longer run. These longer-run effects seem to be driven by an increased sensitivity to subsequent macroeconomic shocks.

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?JOLE240404
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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 24 (2006)
Issue (Month): 4 (October)
Pages: 831-856
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ucp:jlabec:v:24:y:2006:i:4:p:831-856

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  1. Del Bono, Emilia & Weber, Andrea & Winter-Ebmer, Rudolf, 2008. "Clash of Career and Family. Fertility Decisions after Job Displacement," Economics Series 222, Institute for Advanced Studies. [Downloadable!]
    Other versions:
  2. Morissette, René & 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. [Downloadable!]
  3. Morissette, René & Ostrovsky, Yuri, 2008. "Comment les familles et les personnes seules réagissent-elles aux licenciements? Un éclairage canadien," Direction des études analytiques : documents de recherche 2008304f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  4. repec:ese:iserwp: is not listed on IDEAS
  5. Jukka Appelqvist, 2007. "Wage and Earnings Losses of Displaced Workers in Finland," Discussion Papers 422, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  6. Verho, Jouko, 2008. "Scars of recession: the long-term costs of the Finnish economic crisis," Working Paper Series 2008:9, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  7. Ohlsson, Henry & Storrie, Donald, 2007. "Long term effects of public policy for displaced workers in Sweden – shipyard workers in the West and miners in the North," Working Paper Series 2007:19, Uppsala University, Department of Economics. [Downloadable!]
  8. Nykvist, Jenny, 2008. "The Effects of Displacement on Self-employment Survival," Working Paper Series 764, Research Institute of Industrial Economics. [Downloadable!]
  9. Andreas KUHN & Rafael LALIVE & Josef ZWEIMÜLLER, 2007. "The Public Health Costs of Unemployment," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 07.08, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
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This page was last updated on 2009-11-21.

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