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Job Displacement and Job Mobility: The Role of Joblessness

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Abstract

Who is harmed by and who benefits from worker reallocation? We investigate the earnings consequences of changing jobs and find a wide dispersion in outcomes. This dispersion is driven not by whether the worker was displaced, but by the duration of joblessness between job spells. Job movers who experience joblessness suffer a persistent reduction in earnings and tend to move to lower-paying firms, suggesting that job ladder models offer a useful lens through which to understand the negative consequences of job separations.

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  • Bruce Fallick & John Haltiwanger & Erika McEntarfer & Matthew Staiger, 2019. "Job Displacement and Job Mobility: The Role of Joblessness," Working Papers 201927R, Federal Reserve Bank of Cleveland, revised 31 Aug 2021.
  • Handle: RePEc:fip:fedcwq:86642
    DOI: 10.26509/frbc-wp-201927r
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    More about this item

    Keywords

    displaced workers; job mobility; job ladders;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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