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Post-Layoff Earnings among Semiconductor Workers

Author

Listed:
  • Paul M. Ong
  • Don Mar

Abstract

This study uses administrative data from California's unemployment insurance program to analyze the post-layoff earnings of displaced and recalled workers in Silicon Valley's semiconductor industry between 1984 and 1987. The authors find losses from inter-sectoral displacement that are consistent with losses found in other studies of job dislocation. The results show, however, that displaced workers who found work within the high-technology sector had earnings similar to those of recalled workers, a finding at odds with theories that emphasize either firm-specific human capital or internal labor markets. These results are instead consistent with the presence of both industry-specific human capital and efficiency wages in the high-technology sector.

Suggested Citation

  • Paul M. Ong & Don Mar, 1992. "Post-Layoff Earnings among Semiconductor Workers," ILR Review, Cornell University, ILR School, vol. 45(2), pages 366-379, January.
    • Handle: RePEc:sae:ilrrev:v:45:y:1992:i:2:p:366-379
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    Cited by:

    1. Yolanda Kodrzycki, 2007. "Using unexpected recalls to examine the long-term earnings effects of job displacement," Working Papers 07-2, Federal Reserve Bank of Boston.
    2. Parent, Daniel, 2000. "Industry-Specific Capital and the Wage Profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 306-323, April.
    3. Ananish Chaudhuri & Tony So & Erwann Sbai, 2017. "Pay cuts and layoffs in an experimental minimum effort coordination game," Economics Bulletin, AccessEcon, vol. 37(3), pages 2181-2197.
    4. Sérgio Lagoa & Fátima Suleman, 2016. "Industry- and occupation-specific human capital: evidence from displaced workers," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(1), pages 44-68, April.
    5. Sebastián Galiani and Federico Sturzenegger, "undated". "The Impact of Privatization on the Earnings of Restructured Workers," Business School Working Papers longterm, Universidad Torcuato Di Tella.
    6. 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.
    7. Anders Boman, 2011. "Does migration pay? Earnings effects of geographic mobility following job displacement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1369-1384, October.
    8. Alexandros Zangelidis, 2008. "Occupational And Industry Specificity Of Human Capital In The British Labour Market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(4), pages 420-443, September.
    9. Maria Abreu & Alessandra Faggian & Philip McCann, 2011. "Migration and inter-industry mobility of UK graduates: Effect on earnings and career satisfaction," ERSA conference papers ersa11p118, European Regional Science Association.
    10. Francesca Sgobbi & Fátima Suleman, 2015. "The Value of Transferable Skills," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(4), pages 378-399, September.
    11. Douglas A. Irwin, 1996. "The U.S.-Japan Semiconductor Trade Conflict," NBER Chapters, in: The Political Economy of Trade Protection, pages 5-14, National Bureau of Economic Research, Inc.
    12. Douglas A. Irwin, 1996. "Trade Policies and the Semiconductor Industry," NBER Chapters, in: The Political Economy of American Trade Policy, pages 11-72, National Bureau of Economic Research, Inc.
    13. Francesca Sgobbi, 2013. "The Borders of Inter-Firm Mobility for ICT Employees in Italy," International Journal of Human Capital and Information Technology Professionals (IJHCITP), IGI Global, vol. 4(1), pages 34-45, January.
    14. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.

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