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Explaining changes in the age distribution of displaced workers

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  • Daniel Rodriguez
  • Madeline Zavodny

Abstract

Using Displaced Worker Survey data, this paper examines changes in the age distribution of displaced workers during the 1983–87 and 1993–97 periods. Older workers comprised a significantly larger fraction of displaced workers during the later period. Potential explanations for this phenomenon include demographic shifts in the labor force, changes in technology, and industry and occupational shifts. Kernel density estimates indicate that the aging of the labor force accounts for the majority of the shift in the age distribution of displaced workers. Changes in technology also appear to have contributed to the shift in the age distribution of displaced workers by increasing the likelihood of displacement among older workers relative to younger workers. Differential changes across age groups between goods-producing and service-producing jobs and between blue-collar and white-collar jobs appear to have had little effect on the change in the age distribution of displaced workers.

Suggested Citation

  • Daniel Rodriguez & Madeline Zavodny, 2000. "Explaining changes in the age distribution of displaced workers," FRB Atlanta Working Paper 2000-1, Federal Reserve Bank of Atlanta.
  • Handle: RePEc:fip:fedawp:2000-1
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    File URL: http://www.frbatlanta.org//filelegacydocs/wp0001.pdf
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    References listed on IDEAS

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    1. Eli Berman & John Bound & Zvi Griliches, 1994. "Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 367-397.
    2. Finis Welch, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," UCLA Economics Working Papers 146, UCLA Department of Economics.
    3. Daniel Aaronson & Kenneth Housinger, 1999. "The impact of technology on displacement and reemployment," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 14-30.
    4. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
    5. Ann P. Bartel & Nachum Sicherman, 1999. "Technological Change and Wages: An Interindustry Analysis," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 285-325, April.
    6. Daniel Polsky, 1999. "Changing Consequences of Job Separation in the United States," ILR Review, Cornell University, ILR School, vol. 52(4), pages 565-580, July.
    7. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-176, February.
    8. John T. Addison & Douglas A. Fox & Christopher J. Ruhm, 1996. "Trade Sensitivity, Technology, and Labor Displacement," NBER Working Papers 5621, National Bureau of Economic Research, Inc.
    9. Welch, Finis, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 65-97, October.
    10. Michael Podgursky & Paul Swaim, 1987. "Job Displacement and Earnings Loss: Evidence from the Displaced Worker Survey," ILR Review, Cornell University, ILR School, vol. 41(1), pages 17-29, October.
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    Cited by:

    1. Younghwan Song, 2009. "Training, Technological Changes, and Displacement," Journal of Labor Research, Springer, vol. 30(3), pages 201-218, September.

    More about this item

    Keywords

    Labor turnover ; Demography ; Labor supply;

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