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Have Employment Patterns of Older Displaced Workers Improved Since the Late 1970s?

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  • Chen, Wen-Hao
  • Morissette, René

Abstract

In this paper, we document the post-displacement employment patterns observed between 1979 and 2004 for displaced workers aged 50 to 54. We uncover four key patterns. First, we detect no upward trend in the re-employment rates of male displaced workers in the aggregate, in manufacturing or outside manufacturing. Second, we show that re-employment rates of displaced women generally increased over time. Third, we find substantial evidence that median and average earnings losses of males displaced from manufacturing in recent years (i.e. between 2000 and 2004) were higher than those of comparable cohorts displaced during the 1980s. Part of this increase is related to the lower re-employment rates observed in recent years for males displaced from manufacturing. These lower re-employment rates suggest that, following displacement, aggregate working hours likely fell for males displaced from manufacturing. Finally, we show that median and average earnings losses of women displaced from non-manufacturing firms fell over time.

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File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%2061%20-%20Chen%20and%20Morissette.pdf
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Bibliographic Info

Paper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2010-20.

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Length: 60 pages
Date of creation: 27 May 2010
Date of revision: 27 May 2010
Handle: RePEc:ubc:clssrn:clsrn_admin-2010-20

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Web page: http://www.clsrn.econ.ubc.ca/

Related research

Keywords: Layoffs; Job security; Job loss; Job stability; Labour turnover;

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  1. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, American Economic Association, vol. 83(4), pages 685-709, September.
  2. Finnie, Ross & Gray, David, 2009. "Displacement of Older Workers: Re-employment, Hastened Retirement, Disability, or Other Destinations?," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2009-24, Vancouver School of Economics, revised 13 Mar 2009.
  3. Morissette, Rene, 2004. "Have Permanent Layoff Rates Increased in Canada?," Analytical Studies Branch Research Paper Series 2004218e, Statistics Canada, Analytical Studies Branch.
  4. Zhang, Xuelin & Morissette, Rene & Frenette, Marc, 2007. "Earnings Losses of Displaced Workers: Canadian Evidence from a Large Administrative Database on Firm Closures and Mass Layoffs," Analytical Studies Branch Research Paper Series 2007291e, Statistics Canada, Analytical Studies Branch.
  5. Peter Kuhn & Arthur Sweetman, 1998. "Wage loss following displacement: The role of union coverage," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 384-400, April.
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