IDEAS home Printed from https://ideas.repec.org/p/zbw/clefwp/44.html
   My bibliography  Save this paper

Beyond lost earnings: The long-term impact of jobdisplacement on workers' commuting behavior

Author

Listed:
  • Duan, Yige
  • Jost, Oskar
  • Jost, Ramona

Abstract

We study the long-term impact of job displacement on workers' commuting behavior. Our measures of commuting exploit geo-coordinates of workers' places of residence and places of work, from which we calculate the door-to-door commuting distance and commuting time. Using German employee-employer matched data and an event study design, we identify the causal effect of job loss on workers displaced during a mass layoff. Conditional on finding a new job, workers' commuting distance and commuting time rise sharply after displacement and gradually decline in subsequent years. The recovery is due to employer changes rather than migration, and a larger increase in commuting would mitigate the wage loss due to job displacement. To rationalize our findings, we build an on-the-job search model with heterogeneous firm productivity and commuting distances. Our model predicts a joint recovery of wages and commuting despite a static tradeoff between the two attributes.

Suggested Citation

  • Duan, Yige & Jost, Oskar & Jost, Ramona, 2022. "Beyond lost earnings: The long-term impact of jobdisplacement on workers' commuting behavior," CLEF Working Paper Series 44, Canadian Labour Economics Forum (CLEF), University of Waterloo.
  • Handle: RePEc:zbw:clefwp:44
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/261473/1/1810710820.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Aaron Flaaen & Matthew D. Shapiro & Isaac Sorkin, 2019. "Reconsidering the Consequences of Worker Displacements: Firm versus Worker Perspective," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(2), pages 193-227, April.
    2. Blien, Uwe & Dauth, Wolfgang & Roth, Duncan H.W., 2021. "Occupational routine intensity and the costs of job loss: evidence from mass layoffs," Labour Economics, Elsevier, vol. 68(C).
    3. Alan Manning & Barbara Petrongolo, 2017. "How Local Are Labor Markets? Evidence from a Spatial Job Search Model," American Economic Review, American Economic Association, vol. 107(10), pages 2877-2907, October.
    4. Daniel Fackler & Lisa Rippe, 2017. "Losing Work, Moving Away? Regional Mobility After Job Loss," LABOUR, CEIS, vol. 31(4), pages 457-479, December.
    5. repec:iab:iabjlr:v:54:i:1:p:art.10 is not listed on IDEAS
    6. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-188, January.
    7. Tazhitdinova, Alisa, 2020. "Do only tax incentives matter? Labor supply and demand responses to an unusually large and salient tax break," Journal of Public Economics, Elsevier, vol. 184(C).
    8. Dauth, Wolfgang & Eppelsheimer, Johann, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages 1-10.
    9. Daniel Fackler & Steffen Mueller & Jens Stegmaier, 2021. "Explaining Wage Losses After Job Displacement: Employer Size and Lost Firm Wage Premiums," Journal of the European Economic Association, European Economic Association, vol. 19(5), pages 2695-2736.
    10. Dauth, Wolfgang & Eppelsheimer, Johann, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages .10(1-10).
    11. Simon Franklin, 2018. "Location, Search Costs and Youth Unemployment: Experimental Evidence from Transport Subsidies," Economic Journal, Royal Economic Society, vol. 128(614), pages 2353-2379, September.
    12. Dauth, Wolfgang & Haller, Peter, 2020. "Is there loss aversion in the trade-off between wages and commuting distances?," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    13. Valentin Verdier, 2020. "Average treatment effects for stayers with correlated random coefficient models of panel data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 917-939, November.
    14. Wyatt Brooks & Kevin Donovan, 2020. "Eliminating Uncertainty in Market Access: The Impact of New Bridges in Rural Nicaragua," Econometrica, Econometric Society, vol. 88(5), pages 1965-1997, September.
    15. Meekes, Jordy & Hassink, Wolter H.J., 2019. "The role of the housing market in workers′ resilience to job displacement after firm bankruptcy," Journal of Urban Economics, Elsevier, vol. 109(C), pages 41-65.
    16. Wolfgang Dauth & Johann Eppelsheimer, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis: a guide," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-14, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oskar Jost & Holger Seibert, 2022. "Homeoffice spart ein Zehntel Treibstoff ein [Home Office Saves a Tenth of Fuel]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(7), pages 540-544, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hannah Illing & Johannes Schmieder & Simon Trenkle, "undated". "The Gender Gap in Earnings Losses After Job Displacement," CRC TR 224 Discussion Paper Series crctr224_2022_381, University of Bonn and University of Mannheim, Germany.
    2. Illing, Hannah & Koch, Theresa, 2021. "Who Suffers the Greatest Loss? Costs of Job Displacement for Migrants and Natives," IAB-Discussion Paper 202108, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Bachmann, Ronald & Demir, Gökay & Green, Colin & Uhlendorff, Arne, 2022. "The Role of Within-Occupation Task Change in Wage Development," VfS Annual Conference 2022 (Basel): Big Data in Economics 264113, Verein für Socialpolitik / German Economic Association.
    4. Bachmann, Ronald & Martinez Flores, Fernanda & Rulff, Christian, 2022. "Die Lohnlücke in der Zeitarbeit: Eine empirische Analyse auf Grundlage von BA-Daten und der Verdienststrukturerhebung," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 262219.
    5. Martin Kroczek & Philipp Kugler & Anne Zühlke, 2022. "Erwerbsverläufe und Einkommensentwicklung in der Pflege," IAW Discussion Papers 137, Institut für Angewandte Wirtschaftsforschung (IAW).
    6. Bachmann, Ronald & Martinez Flores, Fernanda & Rulf, Christian, 2022. "Die Lohnlücke in der Zeitarbeit: Eine empirische Analyse auf Grundlage der Integrierten Erwerbsbiografien und der Verdienststrukturerhebung," RWI Materialien 153, RWI - Leibniz-Institut für Wirtschaftsforschung.
    7. Rude, Britta & Giesing, Yvonne, 2022. "Technological Change and Immigration - A Race for Talent or of Displaced Workers," VfS Annual Conference 2022 (Basel): Big Data in Economics 264093, Verein für Socialpolitik / German Economic Association.
    8. Heiko Stüber & Wolfgang Dauth & Johann Eppelsheimer, 2023. "A guide to preparing the sample of integrated labour market biographies (SIAB, version 7519 v1) for scientific analysis," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-11, December.
    9. Caroline Neuber-Pohl & Damiano Pregaldini & Uschi Backes-Gellner & Sandra Dummert & Harald Pfeifer, 2023. "How negative labor supply shocks affect training in firms: Lessons from opening the Swiss-German border," Economics of Education Working Paper Series 0203, University of Zurich, Department of Business Administration (IBW), revised Nov 2023.
    10. Virginia Sondergeld & Katharina Wrohlich, 2023. "Women in Management and the Gender Pay Gap," Discussion Papers of DIW Berlin 2046, DIW Berlin, German Institute for Economic Research.
    11. Niklas Gohl, 2023. "Working Longer, Working Stronger? The Forward-Looking Effects of Increasing the Retirement Age on (Un)employment Behaviour," Berlin School of Economics Discussion Papers 0013, Berlin School of Economics.
    12. Christina Langer & Simon Wiederhold, 2023. "The Value of Early-Career Skills," Working Papers 222, Bavarian Graduate Program in Economics (BGPE).
    13. Moritz Drechsel‐Grau & Andreas Peichl & Kai D. Schmid & Johannes F. Schmieder & Hannes Walz & Stefanie Wolter, 2022. "Inequality and income dynamics in Germany," Quantitative Economics, Econometric Society, vol. 13(4), pages 1593-1635, November.
    14. Sebastian Siegloch & Nils Wehrhöfer & Tobias Etzel, 2022. "Spillover, Efficiency and Equity Effects of Regional Firm Subsidies," ECONtribute Discussion Papers Series 210, University of Bonn and University of Cologne, Germany.
    15. Nassal, Lea & Paul, Marie, 2021. "Couples, Careers, and Spatial Mobility," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242370, Verein für Socialpolitik / German Economic Association.
    16. Hannah Illing, 2023. "Crossing Borders: Labor Market Effects of European Integration," ECONtribute Discussion Papers Series 221, University of Bonn and University of Cologne, Germany.
    17. Kamila Cygan-Rehm, 2022. "Lifetime Consequences of Lost Instructional Time in the Classroom: Evidence from Shortened School Years," CESifo Working Paper Series 9892, CESifo.
    18. Fackler, Daniel & Stegmaier, Jens & Upward, Richard, 2023. "Safety net or helping hand? The effect of job search assistance and compensation on displaced workers," IWH Discussion Papers 18/2023, Halle Institute for Economic Research (IWH).
    19. Egger, Hartmut & Jahn, Elke & Kornitzky, Stefan, 2022. "How does the position in business group hierarchies affect workers’ wages?," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 244-263.
    20. Adunts, David & Brücker, Herbert & Fendel, Tanja & Hauptmann, Andreas & Keita, Sekou & Konle-Seidl, Regina, 2022. "Gesteuerte Erwerbsmigration nach Deutschland," IAB-Forschungsbericht 202223, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
      • Brücker, Herbert & Adunts, Davit & Fendel, Tanja & Hauptmann, Andreas & Keita, Sekou & Konle-Seidl, Regina, 2022. "Gesteuerte Erwerbsmigration nach Deutschland," Working Papers 03/2022, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.

    More about this item

    Keywords

    commuting; mobility; displacement; job search;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:clefwp:44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://clef.uwaterloo.ca/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.