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Job Displacement and Job Mobility: The Role of Joblessness

Author

Listed:
  • Bruce Fallick
  • John C. Haltiwanger
  • Erika McEntarfer
  • Matthew Staiger

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.

Suggested Citation

  • Bruce Fallick & John C. Haltiwanger & Erika McEntarfer & Matthew Staiger, 2021. "Job Displacement and Job Mobility: The Role of Joblessness," NBER Working Papers 29187, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29187
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    Cited by:

    1. Antonio Martins-Neto & Xavier Cirera & Alex Coad, 2024. "Routine-biased technological change and employee outcomes after mass layoffs: evidence from Brazil," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(3), pages 555-583.
    2. Katrin Rickmeier, 2025. "Mobility after job loss in Germany: the effects of regional economic opportunities and economic worries on mobility intentions and behaviour," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 45(2), pages 271-297, June.
    3. Jonathan Colmer & Eleanor Krause & Eva Lyubich & John Voorheis, 2024. "Transitional Costs and the Decline of Coal: Worker-Level Evidence," Working Papers 24-53, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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