The Effects of Being Out of the Labor Market on Subsequent Wages: Evidence for Uruguay
Based on administrative data combining workers’ earnings histories and unemployment insurance benefits, we document short and long term wage losses for a large sample of Uruguayan formal workers with high tenure. The contribution of this paper is to provide original evidence about job separation costs in a developing country, based on a unique array of social security and unemployment insurance administrative micro-data. Our main findings indicate that workers lose around 38 % of their previous wages in the first quarter after separation, and 1 year after, losses are still more than 14 %. If we consider earnings plus unemployment insurance benefits, losses at the quarter of separation are considerable lower, amounting 22 % of previous wages. We also provide original evidence about how wage losses vary across age groups, gender, industry and size of the firm. Differences between switchers and non switchers, as well as the effects of the economic cycle are also analyzed. Copyright Springer Science+Business Media New York 2014
Volume (Year): 35 (2014)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.springer.com/economics/journal/12122|
|Order Information:||Web: http://link.springer.de/orders.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lockwood, Ben, 1991. "Information Externalities in the Labour Market and the Duration of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 58(4), pages 733-53, July.
- Steven J. Davis & Till Von Wachter, 2011.
"Recessions and the Costs of Job Loss,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 43(2 (Fall)), pages 1-72.
- Steven J. Davis & Till M. von Wachter, 2011. "Recessions and the Cost of Job Loss," NBER Working Papers 17638, National Bureau of Economic Research, Inc.
- Steven J. Davis & Till Von Wachter, 2011. "Recessions and the Costs of Job Loss," Working Papers 2011-009, Becker Friedman Institute for Research In Economics.
- repec:ese:iserwp:2004-21 is not listed on IDEAS
- Kenneth A. Couch & Dana W. Placzek, 2010. "Earnings Losses of Displaced Workers Revisited," American Economic Review, American Economic Association, vol. 100(1), pages 572-89, March.
- Daniel Sullivan & Till von Wachter, 2009. "Job Displacement and Mortality: An Analysis Using Administrative Data," The Quarterly Journal of Economics, MIT Press, vol. 124(3), pages 1265-1306, August.
- Kaplan, David & Martinez, Gabriel & Robertson, Raymond, 2005.
"What Happens to Wages After Displacement?,"
3079, University Library of Munich, Germany.
- Carneiro, Anabela & Portugal, Pedro, 2006.
"Earnings Losses of Displaced Workers: Evidence from a Matched Employer-Employee Data Set,"
IZA Discussion Papers
2289, Institute for the Study of Labor (IZA).
- Anabela Carneiro & Pedro Portugal, 2006. "Earnings Losses of Displaced Workers: Evidence from a Matched Employer-employee Data Set," CEF.UP Working Papers 0607, Universidade do Porto, Faculdade de Economia do Porto.
- Anabela Carneiro & Pedro Portugal, 2006. "Earnings Losses of Displaced Workers: Evidence from a Matched Employer-Employee Data Set," Working Papers w200614, Banco de Portugal, Economics and Research Department.
- Jukka Appelqvist, 2007. "Wage and Earnings Losses of Displaced Workers in Finland," Discussion Papers 422, Government Institute for Economic Research Finland (VATT).
- Till von Wachter & Jae Song & Joyce Manchester, 2008. "Long-Term Earnings Losses due to Job Separation During the 1982 Recession: An Analysis Using Longitudinal Administrative Data from 1974 to 2004," Discussion Papers 0708-16, Columbia University, Department of Economics.
- Marcus Eliason & Donald Storrie, 2009.
"Does Job Loss Shorten Life?,"
Journal of Human Resources,
University of Wisconsin Press, vol. 44(2).
- Bruce C. Fallick, 1996.
"A review of the recent empirical literature on displaced workers,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 50(1), pages 5-16, October.
- Bruce C. Fallick, 1995. "A review of the recent empirical literature on displaced workers," Finance and Economics Discussion Series 95-14, Board of Governors of the Federal Reserve System (U.S.).
- Ruhm, Christopher J, 1991. "Are Workers Permanently Scarred by Job Displacements?," American Economic Review, American Economic Association, vol. 81(1), pages 319-24, March.
- Alexander Hijzen & Richard Upward & Peter W. Wright, 2010. "The Income Losses of Displaced Workers," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
- Kletzer, Lori Gladstein, 1989. "Returns to Seniority after Permanent Job Loss," American Economic Review, American Economic Association, vol. 79(3), pages 536-43, June.
- Marcus Eliason, 2012.
"Lost jobs, broken marriages,"
Journal of Population Economics,
Springer, vol. 25(4), pages 1365-1397, October.
- Marcus Eliason, 2011. "Income after job loss: the role of the family and the welfare state," Applied Economics, Taylor & Francis Journals, vol. 43(5), pages 603-618.
- Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
- 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.
- Addison, John T & Portugal, Pedro, 1989. "Job Displacement, Relative Wage Changes, and Duration of Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(3), pages 281-302, July.
When requesting a correction, please mention this item's handle: RePEc:spr:jlabre:v:35:y:2014:i:1:p:39-62. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.