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Wage and Earnings Losses of Displaced Workers in Finland

  • Jukka Appelqvist
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    Abstract: The purpose of this study is to investigate the cost of job displacement for private sector workers displaced in Finland during the years 1992 and 1997. Our main goal is to measure the ways in which involuntary job loss affects the subsequent labor income of displaced workers when compared to similar workers who were not displaced. Our main finding is that displaced workers suffer substantial and persistent losses in both monthly wages and annual earnings. The severity of these losses is related to the time during which the displacement happened: the workers who were displaced in 1992 (during the recession) suffered considerably larger losses than the workers who were displaced in 1997. The final section of the study discusses possible explanations for the estimated losses.

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    Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 422.

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    Date of creation: 25 May 2007
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    Handle: RePEc:fer:dpaper:422
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