Jobless spells and re-employment wages
Many studies of job loss attribute the earnings losses associated with layoffs to the loss of job, occupation, and industry-specific human capital. This paper estimates the effect of jobless spells on post-layoff wages using data from the 1984 Panel of Survey on Income Participation for a sample of adult, white male workers who were permanently laid off between 1974 and 1984. The estimated impact of jobless spells on starting wages and survey date wages, several years after re-employment, are controlled for separations, layoffs, and quits and for individual and job characteristics. The estimates show that jobless spell durations reduce starting wages. Wage growth in the new job is lower for workers who experience long spell durations, a result that suggests acceptance of jobs which are poor matches compared to other workers who spend less time out of work following a layoff. The findings support labour force policies which minimize the amount of time a person is out of work.
Volume (Year): 29 (1997)
Issue (Month): 9 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
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.:
- Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993.
"Earnings Losses of Displaced Workers,"
American Economic Review,
American Economic Association, vol. 83(4), pages 685-709, September.
- Louis S. Jacobson & Robert J. LaLonde & Daniel Sullivan, 1992. "Earnings Losses of Displaced Workers," Upjohn Working Papers and Journal Articles 92-11, W.E. Upjohn Institute for Employment Research.
- Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
- William J. Carrington, 1993. "Wage Losses for Displaced Workers: Is It Really the Firm That Matters?," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 435-462.
- Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc.
- Jacob Mincer & Boyan Jovanovic, 1979.
"Labor Mobility and Wages,"
NBER Working Papers
0357, National Bureau of Economic Research, Inc.
- Dale Mortensen, 1984.
"Job Search and Labor Market Analysis,"
594, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Ann P. Bartel & George J. Borjas, 1981.
"Wage Growth and Job Turnover: An Empirical Analysis,"
in: Studies in Labor Markets, pages 65-90
National Bureau of Economic Research, Inc.
- Ann P. Bartel & George J. Borjas, 1978. "Wage Growth and Job Turnover: An Empirical Analysis," NBER Working Papers 0285, National Bureau of Economic Research, Inc.
- 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.
- Gottschalk, Peter & Maloney, Tim, 1985. "Involuntary Terminations, Unemployment, and Job Matching: A Test of Job Search Theory," Journal of Labor Economics, University of Chicago Press, vol. 3(2), pages 109-23, April.
- Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-77, February.
- Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-55, June.
- 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:taf:applec:v:29:y:1997:i:9:p:1169-1177. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.