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Job Displacement, Inter-Regional Mobility and Long-Term Earnings

Author

Listed:
  • Maczulskij, Terhi

    (ETLA - The Research Institute of the Finnish Economy)

  • Böckerman, Petri

    (University of Jyväskylä)

  • Kosonen, Tuomas

    (Labour Institute for Economic Research)

Abstract

We examine the effect of job displacement on regional mobility using linked employer-employee panel data for the 1995-2014 period. We also study whether displaced movers obtain earnings and employment gains compared to displaced stayers. The results show that job displacement increases the migration probability by ~70%. However, social capital in a region and housing characteristics decrease the propensity to move, indicating that people do not make the migration decisions solely based on short-term economic incentives. Migration has an immediate negative relationship with earnings, but the link diminishes as time passes and eventually turns positive for men. The link between migration and employment is nevertheless positive and persistent for both genders.

Suggested Citation

  • Maczulskij, Terhi & Böckerman, Petri & Kosonen, Tuomas, 2018. "Job Displacement, Inter-Regional Mobility and Long-Term Earnings," IZA Discussion Papers 11635, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11635
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    Cited by:

    1. Mr. Tigran Poghosyan, 2018. "Regional Labor Mobility in Finland," IMF Working Papers 2018/252, International Monetary Fund.
    2. Hyungjo Hur & Keumseok Koh, 2023. "Why and Where Do Highly Educated Workers Relocate? A National-Level Analysis across U.S. Census Regions," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    3. Maria Vaalavuo & Mikko-Waltteri Sihvola, 2021. "Are the Sick Left Behind at the Peripheries? Health Selection in Migration to Growing Urban Centres in Finland," European Journal of Population, Springer;European Association for Population Studies, vol. 37(2), pages 341-366, April.

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    More about this item

    Keywords

    unemployment; job displacement; migration; earnings; employment;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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