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The risk and cost of job loss in Canada, 1978-2008

Author

Listed:
  • René Morissette
  • Hanqing Qiu
  • Ping Ching Winnie Chan

Abstract

We assess the risk and cost of worker displacement in Canada over the last three decades. We show that neither the risk of job loss nor the shortterm earnings losses of displaced workers trended upwards during that period. However, shortterm earnings losses of workers displaced from manufacturing increased in recent years, as a smaller proportion found a postdisplacement job in that sector. In line with Stevens and Couch and Placzek, we find that highseniority workers and individuals with stable labour market attachment experienced, five years after displacement, earnings losses that ranged between 10% and 18%.

Suggested Citation

  • René Morissette & Hanqing Qiu & Ping Ching Winnie Chan, 2013. "The risk and cost of job loss in Canada, 1978-2008," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1480-1509, November.
    • Handle: RePEc:cje:issued:v:46:y:2013:i:4:p:1480-1509
    DOI: 10.1111/caje.12052
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    Citations

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    Cited by:

    1. Richard Upward & Peter Wright, 2015. "Don’t Look Down: New Evidence on Job Loss in a Flexible Labour Market," Discussion Papers 2015-10, University of Nottingham, GEP.
    2. Charles M. Beach, 2016. "Changing income inequality: A distributional paradigm for Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(4), pages 1229-1292, November.
    3. Richard Upward & Peter W. Wright, 2019. "Don't Look Down: The Consequences of Job Loss in a Flexible Labour Market," Economica, London School of Economics and Political Science, vol. 86(341), pages 166-200, January.
    4. Mehic, Adrian, 2018. "Industrial employment and income inequality: Evidence from panel data," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 84-93.
    5. Tian, Xinping & Gong, Jinquan & Zhai, Zhe, 2022. "The effect of job displacement on labor market outcomes: Evidence from the Chinese state-owned enterprise reform," China Economic Review, Elsevier, vol. 72(C).

    More about this item

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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