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Earnings losses following job change in Japan: Evidence from a job placement firm

In: Work, Earnings and Other Aspects of the Employment Relation

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  • Michael Bognanno
  • Lisa Delgado

Abstract

The costs of job displacement are examined on a sample of Japanese workers successfully provided job placement services from 2000 to 2003, a period of economic stagnation and structural change in Japan. We find that displaced workers suffer a loss of approximately $1,100 for each additional year of age. Workers also incur a large penalty when they change industries after being displaced. The age–earnings loss relationship is consistent with the operation of a delayed compensation scheme in large firms.

Suggested Citation

  • Michael Bognanno & Lisa Delgado, 2008. "Earnings losses following job change in Japan: Evidence from a job placement firm," Research in Labor Economics, in: Work, Earnings and Other Aspects of the Employment Relation, pages 225-250, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(08)28007-6
    DOI: 10.1016/S0147-9121(08)28007-6
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    Cited by:

    1. Bognanno, Michael & Kambayashi, Ryo, 2013. "Trends in worker displacement penalties in Japan: 1991–2005," Japan and the World Economy, Elsevier, vol. 27(C), pages 41-57.

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