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Labor Market Pooling and Job Outcomes of Displaced Workers

Author

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  • Kekezi, Orsa

    (Swedish Institute for Social Research, Stockholm University)

Abstract

This paper studies how labor market pooling, calculated as regional concentrations of employment in related industries and related occupations, affects the job outcomes of displaced workers. Using matched employer-employee data for displaced workers between 2003-2009 in Sweden, the results show that all workers experience a drop in earnings after displacement. However, the earning losses of workers who lose their jobs in markets with higher labor market pooling are lower. Two mechanisms are highlighted to why this is the case - (1) better job match and (2) higher probability of getting a better job than the pre-displacement one.

Suggested Citation

  • Kekezi, Orsa, 2022. "Labor Market Pooling and Job Outcomes of Displaced Workers," Working Paper Series 2/2022, Stockholm University, Swedish Institute for Social Research.
    • Handle: RePEc:hhs:sofiwp:2022_002
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    More about this item

    Keywords

    job matching; labor market pooling; displaced workers; occupational upgrade;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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