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Estimating the "True" Cost of Job Loss: Evidence Using Matched Data from Califormia 1991-2000

  • Till von Wachter
  • Elizabeth Handwerker
  • Andrew Hildreth

Estimates of the cost of job displacement from survey and administrative data differ markedly. This paper uses a unique match of data between the Displaced Worker Survey (DWS) and administrative wage records from California to examine the sources of this discrepancy. When we use similar estimation methods and account for measurement error in survey wages correlated with worker demographics, estimates of earnings losses at displacement are similar from both datasets and significantly larger than those based on the DWS alone. Also correcting for measurement errors in reported displacements suggests both sources of such estimates may yield lower bounds for the true cost of displacement.

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File URL: ftp://ftp2.census.gov/ces/wp/2009/CES-WP-09-14.pdf
File Function: First version, 2009
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Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 09-14.

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Length: 77 pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:cen:wpaper:09-14
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