The Costs of Displacement in Brazil
Abstract
This paper uses new data that combines information on workers’ education and earnings trajectories with information about their firms to estimate the costs of job displacement in Brazil. We find that high-tenure workers displaced from their firms during mass lay-offs suffer a long-term loss in monthly wages of about 20% per year. We show that this result is robust to different treatment of workers that leave the formal sector of the economy and is driven by the losses suffered by more educated individuals working in big firms at the time of displacement. We conclude that the displacement effects are the result of a combination of the depreciation of firm-specific human capital and the loss of a “good jobâ€Download Info
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Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 200.Length:
Date of creation: 11 Aug 2004
Date of revision:
Handle: RePEc:ecm:latm04:200
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Related research
Keywords: Displacement; Wages; Human Capital;Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-30 (All new papers)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993.
"Earnings Losses of Displaced Workers,"
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- Jovanovic, Boyan, 1979.
"Job Matching and the Theory of Turnover,"
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- Stiglitz, Joseph E, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC'S: The Labor Turnover Model," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 194-227, May.
- Eduardo Pontual Ribeiro & Carlos Corseuil & Daniel Santos & Paulo Furtado & Brunu Amorim & Luciana Servo & Andre Souza, 2004. "Trade liberalization, the exchange rate and job flows in Brazil," Journal of Policy Reform, Taylor and Francis Journals, vol. 7(4), pages 209-223.
- Kletzer, Lori Gladstein, 1989. "Returns to Seniority after Permanent Job Loss," American Economic Review, American Economic Association, vol. 79(3), pages 536-43, June.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Hoek, Jasper, 2006. "Life Cycle Effects of Job Displacement in Brazil," IZA Discussion Papers 2291, Institute for the Study of Labor (IZA).
- David S. Kaplan & Raymond Robertson & Gabriel Martínez González, 2005.
"What Happens to Wages after Displacement?,"
Journal of LACEA Economia,
LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Kaplan, David & Martinez, Gabriel & Robertson, Raymond, 2005. "What Happens to Wages After Displacement?," MPRA Paper 3079, University Library of Munich, Germany.
- Gustavo Gonzaga, 2003.
"Labor Turnover and Labor Legislation in Brazil,"
Textos para discussão
475, Department of Economics PUC-Rio (Brazil).
- Gustavo Gonzaga, 2003. "Labor Turnover and Labor Legislation in Brazil," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Bruno De Paula Rocha & Márcio Issao Nakane, 2011. "Entries, Exits And The Resourceallocation: An Analysis Of The Banking Intermediation In Brazil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 092, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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