Earnings losses of displaced workers
The authors exploit administrative data combining workers' earnings histories with information about their firms to estimate the magnitude and temporal pattern of displaced workers' earnings losses. They find that high-tenure workers separating from distressed firms suffer long-term losses averaging 25 percent per year. In addition, the authors find that displaced workers' losses (1) begin mounting before their separations; (2) depend only slightly on their age and sex; (3) depend more on local labor-market conditions and their former industries; (4) are not, however, limited to those in a few sectors; and (5) are large even for those who find new jobs in similar firms. Copyright 1993 by American Economic Association.
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References listed on IDEAS
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- Blanchflower, David G, 1991.
"Fear, Unemployment and Pay Flexibility,"
Royal Economic Society, vol. 101(406), pages 483-496, May.
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- Topel, Robert, 1990. "Specific capital and unemployment: Measuring the costs and consequences of job loss," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 33(1), pages 181-214, January.
- Joseph E. Stiglitz, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC's: The Labor Turnover Model," The Quarterly Journal of Economics, Oxford University Press, vol. 88(2), pages 194-227.
- Daniel S. Hamermesh, 1987. "What Do We Know About Worker Displacement in the U.S.?," NBER Working Papers 2402, National Bureau of Economic Research, Inc.
- repec:fth:prinin:252 is not listed on IDEAS
- Paul Beaudry & John DiNardo, 1989. "Long-Term Contracts and Equilibrium Models of the Labor Market: Some Favorable Evidence," Working Papers 632, Princeton University, Department of Economics, Industrial Relations Section..
- Paul Swaim & Michael Podgursky, 1991. "The Distribution of Economic Losses among Displaced Workers: A Replication," Journal of Human Resources, University of Wisconsin Press, vol. 26(4), pages 742-755.
- LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
- Orley Ashenfelter & David Card, 1984.
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NBER Working Papers
1489, National Bureau of Economic Research, Inc.
- Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-660, November.
- Orley Ashenfelter & David E. Card, 1984. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," Working Papers 554, Princeton University, Department of Economics, Industrial Relations Section..
- 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.
- Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
- repec:pri:indrel:dsp01kd17cs85n is not listed on IDEAS
- Ruhm, Christopher J, 1991. "Are Workers Permanently Scarred by Job Displacements?," American Economic Review, American Economic Association, vol. 81(1), pages 319-324, March.
- Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-620, September.
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