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Wage and Earnings Losses of Displaced Workers in Finland

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  • Appelqvist, Jukka

Abstract

Abstract: The purpose of this study is to investigate the cost of job displacement for private sector workers displaced in Finland during the years 1992 and 1997. Our main goal is to measure the ways in which involuntary job loss affects the subsequent labor income of displaced workers when compared to similar workers who were not displaced. Our main finding is that displaced workers suffer substantial and persistent losses in both monthly wages and annual earnings. The severity of these losses is related to the time during which the displacement happened: the workers who were displaced in 1992 (during the recession) suffered considerably larger losses than the workers who were displaced in 1997. The final section of the study discusses possible explanations for the estimated losses.

Suggested Citation

  • Appelqvist, Jukka, 2007. "Wage and Earnings Losses of Displaced Workers in Finland," Discussion Papers 422, VATT Institute for Economic Research.
    • Handle: RePEc:fer:dpaper:422
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    File URL: https://www.doria.fi/handle/10024/148407
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    Cited by:

    1. Kyyrä, Tomi & Korkeamäki, Ossi, 2008. "A Distributional Analysis of Displacement Costs in an Economic Depression and Recovery," Discussion Papers 465, VATT Institute for Economic Research.
    2. Verónica Amarante & Rodrigo Arim & Andrés Dean, 2014. "The Effects of Being Out of the Labor Market on Subsequent Wages: Evidence for Uruguay," Journal of Labor Research, Springer, vol. 35(1), pages 39-62, March.
    3. Arja Jolkkonen & Pertti Koistinen & Arja Kurvinen & Liudmila Lipiäinen & Tapio Nummi & Pekka Virtanen, 2018. "Labour Market Attachment Following Major Workforce Downsizings: A Comparison of Displaced and Retained Workers," Work, Employment & Society, British Sociological Association, vol. 32(6), pages 992-1010, December.

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    More about this item

    Keywords

    Displacement; earnings losses; unemployment; Labour market; Työmarkkinat; Effectiveness of public services; Julkisten palvelujen vaikuttavuus;
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