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Long term effects of public policy for displaced workers in Sweden – shipyard workers in the West and miners in the North

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  • Ohlsson, Henry

    ()
    (Department of Economics)

  • Storrie, Donald

    ()
    (European Foundation)

Abstract

The objective of this paper is to study the long term effects of public policy measures for displaced workers. Our focus is on the individuals affected by the cutbacks at the LKAB iron ore mines in northern Sweden in 1983 and the closure of the Uddevalla Shipyard in western Sweden in 1985. These workers not only experienced job loss, but were also the target group for extraordinary labour market policies. Using register data from Statistics Sweden (labour market status, earnings, education etc.), we follow those affected until 1999. We compare this with the corresponding development of a large sample other workers who lost their jobs because of plant closures in 1987–88 but who did not receive extraordinary measures. Estimations of the net effect of the extraordinary measures find that they did have positive long-term effects for the displaced shipyard workers and miners. They have higher employment, not higher unemployment, and higher earnings than the comparison group.

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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2007:19.

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Length: 26 pages
Date of creation: 28 Aug 2007
Date of revision:
Publication status: Published as Ohlsson, Henry and Donald Storrie, 'Long term effects of public policy for displaced workers in Sweden – shipyard workers in the West and miners in the North' in International Journal of Manpower, 2012, pages 514-538.
Handle: RePEc:hhs:uunewp:2007_019

Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Email:
Web page: http://www.nek.uu.se/
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Keywords: involuntary job loss; displacement; plant closures; cutbacks; labour market policy; employment; unemployment; earnings;

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References

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  1. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2011. "How Destructive Is Creative Destruction? Effects Of Job Loss On Job Mobility, Withdrawal And Income," Journal of the European Economic Association, European Economic Association, vol. 9(5), pages 840-870, October.
  2. Ana Lamo & Julian Messina & Etienne Wasmer, 2007. "Are Specific Skills an Obstacle to Labor Market Adjustment? Theory and an Application to the EU Enlargement," CSEF Working Papers 172, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
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  12. Huttunen, Kristiina & Moen, Jarle & Salvanes, Kjell G., 2006. "How Destructive Is Creative Destruction? The Costs of Worker Displacement," IZA Discussion Papers 2316, Institute for the Study of Labor (IZA).
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  14. Eliason, Marcus & Storrie, Donald, 2004. "Does job loss shorten life?," Working Papers in Economics 153, University of Gothenburg, Department of Economics, revised 17 Sep 2007.
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  16. Boheim, Rene & Taylor, Mark P., 2002. "The search for success: do the unemployed find stable employment?," Labour Economics, Elsevier, vol. 9(6), pages 717-735, December.
  17. Stenberg, Anders & Westerlund, Olle, 2004. "Does Comprehensive Education Work for the Long-term Unemployed?," UmeÃ¥ Economic Studies 641, Umeå University, Department of Economics.
  18. Martin Browning & Thomas F. Crossley, 2004. "Shocks, stocks and socks: smoothing consumption over a temporary income loss," CAM Working Papers 2004-05, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  19. Ruhm, Christopher J, 1991. "Are Workers Permanently Scarred by Job Displacements?," American Economic Review, American Economic Association, vol. 81(1), pages 319-24, March.
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