The Costs of Displacement in Brazil
This paper uses new data that combines information on workersâ€™ education and earnings trajectories with information about their firms to estimate the costs of job displacement in Brazil. We find that high-tenure workers displaced from their firms during mass lay-offs suffer a long-term loss in monthly wages of about 20% per year. We show that this result is robust to different treatment of workers that leave the formal sector of the economy and is driven by the losses suffered by more educated individuals working in big firms at the time of displacement. We conclude that the displacement effects are the result of a combination of the depreciation of firm-specific human capital and the loss of a â€œgood jobâ€
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- Stiglitz, Joseph E, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC'S: The Labor Turnover Model," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 194-227, May.
- 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.
- Kletzer, Lori Gladstein, 1989. "Returns to Seniority after Permanent Job Loss," American Economic Review, American Economic Association, vol. 79(3), pages 536-43, June.
- Eduardo Pontual Ribeiro & Carlos Corseuil & Daniel Santos & Paulo Furtado & Brunu Amorim & Luciana Servo & Andre Souza, 2004. "Trade liberalization, the exchange rate and job flows in Brazil," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 7(4), pages 209-223.
- Jovanovic, Boyan, 1979.
"Job Matching and the Theory of Turnover,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages 972-90, October.
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