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Job loss and earnings inequality: Distributional effects of formal re-employment in Chile

Author

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  • Carranza, Rafael
  • Prieto, Joaquín
  • Sehnbruch, Kirsten

Abstract

This paper examines the impact of job losses on the subsequent earnings of formal workers in Chile using administrative data. It contributes to the literature by examining the impact of job losses across the earnings distribution using unconditional quantile regression analysis. The paper thus provides evidence on the costs of losing a formal job in an emerging economy that is now considered 'high-income' but still suffers from high earnings inequality and other issues that characterise labour markets in developing countries, such as high job rotation.

Suggested Citation

  • Carranza, Rafael & Prieto, Joaquín & Sehnbruch, Kirsten, 2025. "Job loss and earnings inequality: Distributional effects of formal re-employment in Chile," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1020-1036.
    • Handle: RePEc:eee:ecanpo:v:86:y:2025:i:c:p:1020-1036
    DOI: 10.1016/j.eap.2025.02.021
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    More about this item

    Keywords

    Earnings inequality; Unemployment; Formal employment; Chile; Distributive analysis of job losses; Wage losses;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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