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Earnings losses of displaced workers and the business cycle: An analysis with administrative data

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  • Couch, Kenneth A.
  • Jolly, Nicholas A.
  • Placzek, Dana W.

Abstract

This paper examines the earnings losses of displaced workers over the business cycle. Long-term earnings losses for these workers during a recessionary period are 1.7 to 3.9 times larger than for those observed during a period of economic growth.

Suggested Citation

  • Couch, Kenneth A. & Jolly, Nicholas A. & Placzek, Dana W., 2011. "Earnings losses of displaced workers and the business cycle: An analysis with administrative data," Economics Letters, Elsevier, vol. 111(1), pages 16-19, April.
  • Handle: RePEc:eee:ecolet:v:111:y:2011:i:1:p:16-19
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    References listed on IDEAS

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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, vol. 83(4), pages 685-709, September.
    2. Kenneth A. Couch & Dana W. Placzek, 2010. "Earnings Losses of Displaced Workers Revisited," American Economic Review, American Economic Association, vol. 100(1), pages 572-589, March.
    3. David S. Kaplan & Raymond Robertson & Gabriel Martínez González, 2005. "What Happens to Wages after Displacement?," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 197-242, January.
    4. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 17(Nov), pages 2-20.
    5. Marie Howland & George E. Peterson, 1988. "Labor Market Conditions and the Reemployment of Displaced Workers," ILR Review, Cornell University, ILR School, vol. 42(1), pages 109-122, October.
    6. Henry S. Farber, 2005. "What do we know about Job Loss in the United States? Evidence from the Displaced Workers Survey, 1984-2004," Working Papers 877, Princeton University, Department of Economics, Industrial Relations Section..
    7. Henry S. Farber, 1997. "The Changing Face of Job Loss in the United States, 1981-1995," Working Papers 761, Princeton University, Department of Economics, Industrial Relations Section..
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. William J. Carrington, 2015. "Do We Know Why Earnings Fall with Job Displacement? Working Paper: 2015-01," Working Papers 49908, Congressional Budget Office.
    2. Peter Z. Schochet & Ronald D'Amico & Jillian Berk & Sarah Dolfin & Nathan Wozny, "undated". "Estimated Impacts for Participants in the Trade Adjustment Assistance (TAA) Program Under the 2002 Amendments," Mathematica Policy Research Reports 582d8723f6884d4eb7a3f95a4, Mathematica Policy Research.
    3. Fackler, Daniel & Müller, Steffen & Stegmaier, Jens, 2017. "Explaining wage losses after job displacement: Employer size and lost firm rents," IWH Discussion Papers 32/2017, Halle Institute for Economic Research (IWH).
    4. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    5. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    6. repec:mpr:mprres:7736 is not listed on IDEAS
    7. Fang, H., 2016. "Insurance Markets for the Elderly," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 237-309, Elsevier.
    8. Cristina Lafuente, 2018. "The best of the two worlds: assessing the use of administrative data for the study of employment," Edinburgh School of Economics Discussion Paper Series 286, Edinburgh School of Economics, University of Edinburgh.
    9. Ronald D'Amico & Peter Z. Schochet, "undated". "The Evaluation of the Trade Adjustment Assistance Program: A Synthesis of Major Findings," Mathematica Policy Research Reports c6b34445ad854f5d8178f580f, Mathematica Policy Research.
    10. repec:mpr:mprres:7742 is not listed on IDEAS
    11. 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.
    12. William J. Carrington & Bruce Fallick, 2017. "Why Do Earnings Fall with Job Displacement?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 688-722, October.
    13. Marta C. Lopes, 2016. "Using the variation in potential duration of unemployment benefits to estimate the causal effect of unemployment duration on re-employment wages," FEUNL Working Paper Series wp608, Universidade Nova de Lisboa, Faculdade de Economia.
    14. Cristina Lafuente, 0. "Unemployment in administrative data using survey data as a benchmark," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 0, pages 1-39.
    15. Verho, Jouko, 2017. "Economic crises and unemployment persistence: Analysis of job losses during the Finnish 1990s recession," Working Papers 99, VATT Institute for Economic Research.
    16. William J. Carrington & Bruce Fallick, 2014. "Why Do Earnings Fall with Job Displacement?," Working Papers (Old Series) 1405, Federal Reserve Bank of Cleveland.
    17. Cristina Lafuente, 2020. "Unemployment in administrative data using survey data as a benchmark," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(2), pages 115-153, June.
    18. Kenneth Couch & Christopher Tamborini & Gayle Reznik, 2015. "The Long-Term Health Implications of Marital Disruption: Divorce, Work Limits, and Social Security Disability Benefits Among Men," Demography, Springer;Population Association of America (PAA), vol. 52(5), pages 1487-1512, October.
    19. 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.

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