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The Costs of Job Loss and Task Usage

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  • Kauhanen, Antti
  • Riukula, Krista

Abstract

This study examines the degree to which the effects of job loss depend on task usage and task distance to other jobs. We use linked employer-employee data and representative survey data on task usage and plant closures to identify individuals who have lost their jobs involuntarily. We find that the heterogeneity in the cost of job loss is linked to task usage. Workers in origin jobs with high levels of social tasks have smaller employment and earnings losses, whereas workers in routine jobs face larger wage losses. Instead, the distance in task usage between the origin job and other jobs does not matter when the usage of manual, abstract, routine and social tasks is taken into account.

Suggested Citation

  • Kauhanen, Antti & Riukula, Krista, 2019. "The Costs of Job Loss and Task Usage," ETLA Working Papers 73, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:wpaper:73
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    Cited by:

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    2. Felipe Barrera-Osorio & Adriana D. Kugler & Mikko I. Silliman, 2021. "Job Training Through Turmoil," NBER Working Papers 29565, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Job loss; Wage loss; Linked Employer-Employee Data; Specific Human Capital;
    All these keywords.

    JEL classification:

    • 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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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