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Earnings Losses of Displaced Workers with Stable Labour Market Attachment: Recent Evidence from Canada

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  • Bonikowska, Aneta
  • Morissette, Rene

Abstract

This study examines long-term earnings losses of workers laid off during the early 1990s and the early 2000s using data from Statistics Canada's Longitudinal Worker File (LWF). In contrast to earlier studies, many of which focused on narrowly defined samples, this study compares earnings losses across all groups of displaced workers with stable labour market attachment prior to layoff. The study shows that focusing solely on high-seniority laid-off workers or workers laid off in firm closures leads to the exclusion of at least two-thirds of Canadian displaced workers with stable labour market attachment.

Suggested Citation

  • Bonikowska, Aneta & Morissette, Rene, 2012. "Earnings Losses of Displaced Workers with Stable Labour Market Attachment: Recent Evidence from Canada," Analytical Studies Branch Research Paper Series 2012346e, Statistics Canada, Analytical Studies Branch.
  • Handle: RePEc:stc:stcp3e:2012346e
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    References listed on IDEAS

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    1. Kenneth A. Couch & Thomas A. Dunn, 1997. "Intergenerational Correlations in Labor Market Status: A Comparison of the United States and Germany," Journal of Human Resources, University of Wisconsin Press, vol. 32(1), pages 210-232.
    2. Grawe, Nathan D., 2003. "Life Cycle Bias in the Estimation of Intergenerational Earnings Persistence," Analytical Studies Branch Research Paper Series 2003207e, Statistics Canada, Analytical Studies Branch.
    3. Corak, Miles & Heisz, Andrew, 1996. "The Intergenerational Income Mobility of Canadian Men," Analytical Studies Branch Research Paper Series 1996089e, Statistics Canada, Analytical Studies Branch.
    4. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters,in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
    5. Peters, H Elizabeth, 1992. "Patterns of Intergenerational Mobility in Income and Earnings," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 456-466, August.
    6. Behrman, Jere R & Taubman, Paul, 1990. "The Intergenerational Correlation between Children's Adult Earnings and Their Parents' Income: Result from the Michigan Panel Survey of Income Dynamics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 115-127, June.
    7. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    8. Eric R. Eide & Mark H. Showalter, 1999. "Factors Affecting the Transmission of Earnings across Generations: A Quantile Regression Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 253-267.
    9. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-429, June.
    10. Bergstrom, Theodore C, 1989. "A Fresh Look at the Rotten Kid Theorem--and Other Household Mysteries," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1138-1159, October.
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    Cited by:

    1. Gimenez-Nadal, J. Ignacio & Molina, José Alberto & Silva Quintero, Edgar, 2016. "How Forced Displacements Caused by a Violent Conflict Affect Wages in Colombia," IZA Discussion Papers 9926, Institute for the Study of Labor (IZA).
    2. Miles Corak, 2016. "`Inequality is the root of social evil,' or Maybe Not? Two Stories about Inequality and Public Policy," Canadian Public Policy, University of Toronto Press, vol. 42(4), pages 367-414, December.
    3. Wiederhold, Simon & Nedelkoska, Ljubica & Neffke, Frank, 2013. "The Impact of Skill Mismatch on Earnings Losses after Job Displacement," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79739, Verein für Socialpolitik / German Economic Association.

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    Keywords

    Employment and unemployment; Labour; Wages; salaries and other earnings;

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