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Long-term effects of involuntary job separations on labour careers

  • Malo, Miguel A.
  • Muñoz-Bullón, Fernando

In this article, we analyse whether involuntary job separations produce long-term effects upon individuals' careers, and the magnitude of such effects. For this purpose, the impact of involuntary job separations on three measures of occupational prestige is examined, using the British Household Panel Survey. Involuntary job separations are found to show a negative effect upon those occupational prestige scales. In particular, when there are additional involuntary job separations, this negative impact is persistent and cumulative. Moreover, this observed decrease in prestige levels is enhanced by the length of job separations. Our results help to explain why displaced workers suffer persistent earnings losses compared to non-displaced workers along their work-life history.

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Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 37 (2008)
Issue (Month): 2 (April)
Pages: 767-788

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Handle: RePEc:eee:soceco:v:37:y:2008:i:2:p:767-788
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620175

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