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Labor Market Conditions and the Reemployment of Displaced Workers

Author

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  • Marie Howland
  • George E. Peterson

Abstract

The authors of this study use data from the January 1984 Current Population Survey to examine the impact of local labor market conditions on the financial losses of displaced manufacturing workers. They find that strong overall growth in the local economy reduced the economic losses of white-collar workers whose industry of displacement was declining, but not of blue-collar workers in the same situation. Most older, poorly educated blue-collar workers with long tenure at their pre-layoff job suffered large financial losses even when displaced in a growing local economy. All workers, including those who were young and well-educated, suffered large financial losses when located in a depressed local economy.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:ilrrev:v:42:y:1988:i:1:p:109-122
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    Cited by:

    1. LE Marcal, 2001. "Does Trade Adjustment Assistance Help Trade‐Displaced Workers?," Contemporary Economic Policy, Western Economic Association International, vol. 19(1), pages 59-72, January.
    2. 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.
    3. Frank Neffke & Anne Otto & Cesar A. Hidalgo, 2016. "The Mobility of Displaced Workers: How the Local Industry Mix Affects Job Search Strategies," CID Working Papers 71, Center for International Development at Harvard University.
    4. Partridge, Mark D. & Rickman, Dan S., 1998. "Regional differences in chronic long-term unemployment," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(2), pages 193-215.
    5. Sewin Chan & Ann Huff Stevens, 1999. "Job Loss and Retirement Behavior of Older Men," Departmental Working Papers 199823, Rutgers University, Department of Economics.
    6. Ruhm, Christopher J, 1994. "Advance Notice, Job Search, and Postdisplacement Earnings," Journal of Labor Economics, University of Chicago Press, vol. 12(1), pages 1-28, January.
    7. Levernier, William & Partridge, Mark D. & Rickman, Dan S., 1998. "Metropolitan-Nonmetropolitan Distinctions in the Determinants of Family Income Inequality," The Review of Regional Studies, Southern Regional Science Association, vol. 28(3), pages 85-106, Winter.
    8. 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.
    9. 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.

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