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Measuring the True Impact of Job Loss on Future Earnings

Author

Listed:
  • Pawel Krolikowski

Abstract

The effect of job displacement on future earnings losses has often been calculated by comparing the earnings of individuals who suffer a displacement at some point in their career with the earnings of those who never lose a job. I show this approach leads to an overstatement of the earnings losses following displacement and discuss an alternative that can ascertain the true effects of displacement in some instances.

Suggested Citation

  • Pawel Krolikowski, 2017. "Measuring the True Impact of Job Loss on Future Earnings," Economic Commentary, Federal Reserve Bank of Cleveland, issue August.
    • Handle: RePEc:fip:fedcec:00073
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    Cited by:

    1. Gabrielle Penrose & Gianni La Cava, 2021. "Job Loss, Subjective Expectations and Household Spending," RBA Research Discussion Papers rdp2021-08, Reserve Bank of Australia.

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