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Long-Term Effects Of Involuntary Job Separations On Labour Careers

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  • Miguel A. Malo

    ()

  • Fernando Muñoz-Bullón

    ()

Abstract

In this article, we analyse whether involuntary job separations present long-term effects upon individuals’ careers, and the magnitude of such effects. For this purpose, the impact of involuntary job separations on three measures of occupational prestige is examined, using the British Household Panel Survey. Involuntary job separations are found to show a negative effect upon those occupational prestige scales. In particular, when additional involuntary job separations are suffered, this negative impact is persistent and cumulative. Moreover, this observed decrease in prestige levels is enhanced by the length of job separations. Our results help to explain why displaced workers suffer persistent earnings losses compared to non-displaced workers along their work-life history.

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Bibliographic Info

Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb034211.

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Date of creation: Jan 2003
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Handle: RePEc:cte:wbrepe:wb034211

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  1. Robert H. Topel & Michael P. Ward, 1988. "Job Mobility and the Careers of Young Men," NBER Working Papers 2649, National Bureau of Economic Research, Inc.
  2. Marin, Alan & Psacharopoulos, George, 1982. "The Reward for Risk in the Labor Market: Evidence from the United Kingdom and a Reconciliation with Other Studies," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 827-53, August.
  3. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 1996. "The psychological impact of unemployment and joblessness," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 25(3), pages 333-358.
  4. Katharine G. Abraham & Henry S. Farber, 1986. "Job Duration, Seniority and Earnings," Working papers 407, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
  6. Goldsmith, Arthur H & Veum, Jonathan R & Darity, William, Jr, 1997. "The Impact of Psychological and Human Capital on Wages," Economic Inquiry, Western Economic Association International, vol. 35(4), pages 815-29, October.
  7. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-76, February.
  8. Paull, G, 1997. "Dynamic Labour Market Behaviour in the British Household Panel Survey : The Effects of Recall Bias and Panel Attrition," Papers 10, Centre for Economic Performance & Institute of Economics.
  9. Linda Dickens & Moira Hart & Michael Jones & Brian Weekes, 1984. "The British experience under a statute prohibiting unfair dismissal," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 37(4), pages 497-514, July.
  10. Ruhm, Christopher J, 1991. "Are Workers Permanently Scarred by Job Displacements?," American Economic Review, American Economic Association, vol. 81(1), pages 319-24, March.
  11. Nickell, Stephen, 1982. "The Determinants of Occupational Success in Britain," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 43-53, January.
  12. Ermisch, John & Francesconi, Marco, 2002. "Intergenerational Social Mobility and Assortative Mating in Britain," IZA Discussion Papers 465, Institute for the Study of Labor (IZA).
  13. 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.
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  15. Kristen Keith & Abagail McWilliams, 1995. "The wage effects of cumulative job mobility," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(1), pages 121-137, October.
  16. Goldsmith, Arthur H. & Veum, Jonathan R. & Darity, William Jr., 1997. "Unemployment, joblessness, psychological well-being and self-esteem: Theory and evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 26(2), pages 133-158.
  17. 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 165-88, January.
  18. Joseph G. Altonji & Nicolas Williams, 1997. "Do Wages Rise with Job Seniority? A Reassessment," NBER Working Papers 6010, National Bureau of Economic Research, Inc.
  19. Oded Galor & Nachum Sicherman, 1988. "A Theory of Career Mobility," University of Chicago - George G. Stigler Center for Study of Economy and State 51, Chicago - Center for Study of Economy and State.
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  21. Topel, Robert, 1990. "Specific capital and unemployment: Measuring the costs and consequences of job loss," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 33(1), pages 181-214, January.
  22. 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.
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Citations

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Cited by:
  1. Miguel Malo & Fernando Muñoz-Bullón, 2008. "Women’s family-related career breaks: a long-term British perspective," Review of Economics of the Household, Springer, vol. 6(2), pages 127-167, June.
  2. repec:hal:wpaper:halshs-00684101 is not listed on IDEAS
  3. repec:hal:cesptp:halshs-00684101 is not listed on IDEAS
  4. Bender, Keith A., 2012. "An analysis of well-being in retirement: The role of pensions, health, and ‘voluntariness’ of retirement," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 424-433.
  5. Miguel A. Malo & Fernando Muñoz-Bullon, 2007. "Breaks In Women'S Careers Due To Family Reasons: A Long-Term Perspective," Business Economics Working Papers wb070101, Universidad Carlos III, Departamento de Economía de la Empresa.

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