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Changes in Earnings Instability and Job Loss

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  • Ann Huff Stevens

Abstract

This paper examines the contribution of job loss or displacement to increasing male earnings instability between 1970 and 1991. Earnings instability increased among both displaced and not-displaced men, so changes associated with job loss cannot fully explain rising instability. Changes in the incidence and consequences of job loss did, however, add substantially to growing earnings instability and to the overall variance of earnings. There is evidence that displacement substantially raised earnings volatility for several years after job loss. That effect, combined with increased numbers of recently displaced workers in the 1980s relative to the previous decade, contributed to rising overall earnings instability.

Suggested Citation

  • Ann Huff Stevens, 2001. "Changes in Earnings Instability and Job Loss," ILR Review, Cornell University, ILR School, vol. 55(1), pages 60-78, October.
    • Handle: RePEc:sae:ilrrev:v:55:y:2001:i:1:p:60-78
    DOI: 10.1177/001979390105500104
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    References listed on IDEAS

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    Cited by:

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    2. Jolly, Nicholas A. & Wagner, Kathryn L., 2023. "Work-limiting disabilities and earnings volatility," Labour Economics, Elsevier, vol. 81(C).
    3. Peter Gottschalk & Robert Moffitt, 2009. "The Rising Instability of U.S. Earnings," Journal of Economic Perspectives, American Economic Association, vol. 23(4), pages 3-24, Fall.
    4. Morissette, Rene & Ostrovsky, Yuri, 2008. "Comment les familles et les personnes seules reagissent-elles aux licenciements? Un eclairage canadien," Direction des études analytiques : documents de recherche 2008304f, Statistics Canada, Direction des études analytiques.
    5. Kristiina Huttunen & Jenni Kellokumpu, 2016. "The Effect of Job Displacement on Couples' Fertility Decisions," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 403-442.
    6. Robert Moffitt & Sisi Zhang, 2018. "The PSID and Income Volatility: Its Record of Seminal Research and Some New Findings," The ANNALS of the American Academy of Political and Social Science, , vol. 680(1), pages 48-81, November.
    7. Riphahn, Regina T. & Schnitzlein, Daniel D., 2016. "Wage mobility in East and West Germany," Labour Economics, Elsevier, vol. 39(C), pages 11-34.
    8. Laura Hospido, 2009. "Job changes and individual-job specific wage dynamics," Working Papers 0907, Banco de España.
    9. Matthew Rutledge, 2011. "Long-Run Earnings Volatility and Health Insurance Coverage: Evidence from the SIPP Gold Standard File," Working Papers 11-35, Center for Economic Studies, U.S. Census Bureau.
    10. Marco Leonardi, 2017. "Job Mobility And Earnings Instability," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 260-280, January.
    11. Lorenzo Cappellari & Marco Leonardi, 2016. "Earnings Instability and Tenure," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(2), pages 202-234, April.
    12. Carranza, Rafael & Prieto, Joaquín & Sehnbruch, Kirsten, 2025. "Job loss and earnings inequality: Distributional effects of formal re-employment in Chile," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1020-1036.
    13. Robert Moffitt & Sisi Zhang, 2018. "Income Volatility and the PSID: Past Research and New Results," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 277-280, May.
    14. Morissette, Rene & Ostrovsky, Yuri, 2008. "How Do Families and Unattached Individuals Respond to Layoffs? Evidence from Canada," Analytical Studies Branch Research Paper Series 2008304e, Statistics Canada, Analytical Studies Branch.
    15. Leonardi, Marco, 2003. "Earnings Instability of Job Stayers and Job Changers," IZA Discussion Papers 946, Institute of Labor Economics (IZA).
    16. Alessio Tomelleri, 2022. "Earnings instability and non-standard employment: cohort-based evidence from the Italian labour market," FBK-IRVAPP Working Papers 2022-02, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.

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