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The Industrial Mobility Of Displaced Workers

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  • FALLICK, B.C.

Abstract

This article uses a two-industry model of unemployment duration and job search to estimate rates of transition of displaced workers from unemployment to employment, distinguishing between employment in a worker's previous industry and in other industries. The competing-risks model allows inferences about search strategies to be drawn from data concerning employment outcomes and allows tests of some fundamental implications of search theory. There is evidence that improvements in the prospects for employment in their previous industry induce displaced workers to reduce search intensity or increase reservation wages in other industries. Copyright 1993 by University of Chicago Press.
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Suggested Citation

  • Fallick, B.C., 1989. "The Industrial Mobility Of Displaced Workers," Papers 1, California Los Angeles - Applied Econometrics.
  • Handle: RePEc:fth:callaa:1
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    References listed on IDEAS

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    1. Barron, John M & McCafferty, Stephen, 1977. "Job Search, Labor Supply, and the Quit Decision: Theory and Evidence," American Economic Review, American Economic Association, vol. 67(4), pages 683-691, September.
    2. Madden, Janice Fanning, 1987. "Gender Differences in the Cost of Displacement: An Empirical Test of Discrimination in the Labor Market," American Economic Review, American Economic Association, vol. 77(2), pages 246-251, May.
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    5. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
    6. John T. Warner & J. Carl Poindexter & Robert M. Fearn, 1980. "Employer-Employee Interaction and the Duration of Unemployment," The Quarterly Journal of Economics, Oxford University Press, vol. 94(2), pages 211-233.
    7. William F. Barnes, 1975. "Job Search Models, the Duration of Unemployment, and the Asking Wage: Some Empirical Evidence," Journal of Human Resources, University of Wisconsin Press, vol. 10(2), pages 230240.
    8. Kathryn L. Shaw, 1985. "Occupational change, employer change, and the transferability of skills," Working Paper Series / Economic Activity Section 55, Board of Governors of the Federal Reserve System (U.S.).
    9. Blau, David M. & Robins, Philip K., 1986. "Job search, wage offers, and unemployment insurance," Journal of Public Economics, Elsevier, vol. 29(2), pages 173-197, March.
    10. John M. Barron & Wesley Mellow, 1979. "Search Effort in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 389-404.
    11. Jerry Hausman & Aaron Han, 1986. "Semiparametric Estimation of Duration and Competing Risk Models," Working papers 450, Massachusetts Institute of Technology (MIT), Department of Economics.
    12. Linda Leighton & Jacob Mincer, 1982. "Labor Turnover and Youth Unemployment," NBER Chapters,in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 235-276 National Bureau of Economic Research, Inc.
    13. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
    14. Gronau, Reuben, 1971. "Information and Frictional Unemployment," American Economic Review, American Economic Association, vol. 61(3), pages 290-301, June.
    15. Bruce K. Fallick, 1988. "Job Search in More Than One Labor Market," UCLA Economics Working Papers 495, UCLA Department of Economics.
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    Cited by:

    1. Marius Brülhart & Robert J. R. Elliott & Joanne Lindley, 2006. "Intra-Industry Trade and Labour-Market Adjustment: A Reassessment Using Data on Individual Workers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 521-545, October.
    2. William J. Carrington, 2015. "Do We Know Why Earnings Fall with Job Displacement? Working Paper: 2015-01," Working Papers 49908, Congressional Budget Office.
    3. Frank Neffke & Anne Otto & César Hidalgo, 2016. "The mobility of displaced workers: How the local industry mix affects job search strategies," Papers in Evolutionary Economic Geography (PEEG) 1605, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2016.
    4. Randall W. Eberts & Christopher J. O'Leary & Kelly DeRango, 2002. "A Frontline Decision Support System for One-Stop Centers," Book chapters authored by Upjohn Institute researchers,in: Randall W. Eberts & Christopher J. O'Leary & Stephen A. Wandner (ed.), Targeting Employment Services, chapter 12, pages 337-379 W.E. Upjohn Institute for Employment Research.
    5. Yolanda K. Kodrzycki, 1998. "Effects of employer-provided severance benefits on reemployment outcomes," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 41-68.
    6. Swaim, Paul & Podgursky, Michael, 1994. "Female Labor Supply Following Displacement: A Split-Population Model of Labor Force Participation and Job Search," Journal of Labor Economics, University of Chicago Press, vol. 12(4), pages 640-656, October.
    7. Chan, William, 1996. "Intersectoral Mobility and Short-Run Labor Market Adjustments," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 454-471, July.
    8. Vilhuber, Lars, 2001. "La spécificité de la formation en milieu de travail : un survol des contributions théoriques et empiriques récentes," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(1), pages 133-167, mars.
    9. Andrew Figura, 2003. "The effect of restructuring on unemployment," Finance and Economics Discussion Series 2003-56, Board of Governors of the Federal Reserve System (U.S.).
    10. LE Marcal, 2001. "Does Trade Adjustment Assistance Help Trade-Displaced Workers?," Contemporary Economic Policy, Western Economic Association International, vol. 19(1), pages 59-72, January.
    11. Shin, Kwanho, 1997. "Sectoral shocks and movement costs: Effects on employment and welfare," Journal of Economic Dynamics and Control, Elsevier, vol. 21(2-3), pages 449-471.
    12. Chen, Ming-Yuan, 2002. "Survival duration of plants: Evidence from the US petroleum refining industry," International Journal of Industrial Organization, Elsevier, vol. 20(4), pages 517-555, April.
    13. Strauss, Jack, 1997. "The influence of traded and nontraded wages on relative prices and real exchange rates," Economics Letters, Elsevier, vol. 55(3), pages 391-395, September.
    14. Yankow, Jeffrey J., 2004. "The Geographic Mobility of Displaced Workers: Do Local Employment Conditions Matter?," The Review of Regional Studies, Southern Regional Science Association, vol. 34(2), pages 120-136.
    15. Idson, Todd L & Valletta, Robert G, 1996. "Seniority, Sectoral Decline, and Employee Retention: An Analysis of Layoff Unemployment Spells," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 654-676, October.
    16. repec:bla:indres:v:56:y:2017:i:4:p:688-722 is not listed on IDEAS
    17. David N. Margolis, 2002. "Licenciements collectifs et délais de reprise d'emploi," Économie et Statistique, Programme National Persée, vol. 351(1), pages 65-85.
    18. Randall W. Eberts & Christopher J. O'Leary, 2003. "A Frontline Decision Support System for Georgia Career Centers," Book chapters authored by Upjohn Institute researchers,in: Joshua Riley & Aquila Branch & Stephen Wandner & Wayne Gordon (ed.), A Compilation of Selected Papers from the Employment and Training Administration's 2003 Biennial National Research Conference, ETA Occasional Paper 20, pages 80-129 W.E. Upjohn Institute for Employment Research.
    19. Carrington, William J. & Fallick, Bruce C., 2014. "Why Do Earnings Fall with Job Displacement?," Working Paper 1405, Federal Reserve Bank of Cleveland.
    20. Tsou, Meng-Wen & Liu, Jin-Tan & Hammitt, James K. & Chang, Ching-Fu, 2013. "The impact of foreign direct investment in China on employment adjustments in Taiwan: Evidence from matched employer–employee data," Japan and the World Economy, Elsevier, vol. 25, pages 68-79.
    21. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
    22. Drinkwater, Stephen & Latreille, Paul L. & Knight, Ben, 2008. "When It's (Mostly) the Taking Part that Counts: The Post-Application Consequences of Employment Tribunal Claims," IZA Discussion Papers 3629, Institute for the Study of Labor (IZA).

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    Keywords

    economic models ; unemployment ; workers ; wages;

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