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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. 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.
    2. 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, revised 2007.
    3. 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.
    4. 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.
    5. 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.
    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. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
    14. Sérgio Lagoa & Fátima Suleman, 2016. "Industry- and occupation-specific human capital: evidence from displaced workers," International Journal of Manpower, Emerald Group Publishing, vol. 37(1), pages 44-68, April.

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