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Long-term effects of involuntary job separations on labour careers

  • Muñoz-Bullón, Fernando
  • Malo, Miguel A.

In this article, we analyse whether involuntary job separations present long-term effects upon individuals' careers, and the magnitude of such effects. For this purpose, the impact of involuntary job separations on three measures of occupational prestige is examined, using the British Household Panel Survey. Involuntary job separations are found to show a negative effect upon those occupational prestige scales. In particular, when additional involuntary job separations are suffered, this negative impact is persistent and cumulative. Moreover, this observed decrease in prestige levels is enhanced by the length of job separations. Our results help to explain why displaced workers suffer persistent earnings losses compared to non-displaced workers along their work-life history.

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Paper provided by Universidad Carlos III de Madrid. Departamento de Economía de la Empresa in its series DEE - Working Papers. Business Economics. WB with number wb034211.

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Date of creation: Jan 2003
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Handle: RePEc:cte:wbrepe:wb034211
Contact details of provider: Web page: http://www.business.uc3m.es/es/index

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  16. Goldsmith, Arthur H. & Veum, Jonathan R. & William Darity, Jr., 1996. "The impact of labor force history on self-esteem and its component parts, anxiety, alienation and depression," Journal of Economic Psychology, Elsevier, vol. 17(2), pages 183-220, April.
  17. Linda Dickens & Moira Hart & Michael Jones & Brian Weekes, 1984. "The British Experience under a Statute Prohibiting Unfair Dismissal," ILR Review, Cornell University, ILR School, vol. 37(4), pages 497-514, July.
  18. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-88, January.
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  20. Kristen Keith & Abagail McWilliams, 1995. "The Wage Effects of Cumulative Job Mobility," ILR Review, Cornell University, ILR School, vol. 49(1), pages 121-137, October.
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  23. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, issue Nov, pages 2-20.
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