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The Changing Face of Job Loss in the United States, 1981-1993

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  • Henry S. Farber

Abstract

I examine changes in the incidence and consequences of job loss by reported cause between 1981 and 1993 using data from Displaced Workers Surveys (DWS), conducted as part of the Current Population Survey (CPS) in even years since 1984. The overall rate of job loss is up somewhat in the 1990s. The increase in job loss is larger for older and more educated workers, but younger and less-educated workers continue to have the highest rates of job loss. Some significant changes are also found in the rate of job loss by reported reason. Next I examine the consequences of displacement for several post- displacement labor market outcomes, including the probability of employment, full-time/part-time status, the change in earnings, job stability, and self-employment status. The adverse consequences of job loss, which have always been substantial, do not appear to have changed systematically over time. More educated workers suffer less economic loss relative to income due to displacement than do the less educated. Self-employment appears to be an important response to displacement, and older workers and the more educated are more likely to turn to self-employment.

Suggested Citation

  • Henry S. Farber, 1996. "The Changing Face of Job Loss in the United States, 1981-1993," NBER Working Papers 5596, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:5596
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    Cited by:

    1. Koeniger, Winfried, 2001. "Labor and Financial Market Interactions: The Case of Labor Income Risk and Car Insurance in the UK 1969-95," IZA Discussion Papers 240, Institute of Labor Economics (IZA).
    2. Joonmo CHO & Jaeho KEUM, 2004. "Job instability in the Korean labour market: Estimating the effects of the 1997 financial crisis," International Labour Review, International Labour Organization, vol. 143(4), pages 373-392, December.
    3. Giovanna Vallanti, 2005. "Capital Mobility and Unemployment Dynamics: Evidence from a Panel of OECD Countries," CEP Discussion Papers dp0684, Centre for Economic Performance, LSE.
    4. Borghans, L. & ter Weel, B.J., 2002. "Do older workers have more trouble using a computer than younger workers?," ROA Research Memorandum 1E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    5. Lawrence F Katz, 1998. "Reflections on US Labour Market Performance," RBA Annual Conference Volume (Discontinued), in: Guy Debelle & Jeff Borland (ed.),Unemployment and the Australian Labour Market, Reserve Bank of Australia.
    6. Mine Zeynep Senses, 2006. "The Effects of Outsourcing on the Elasticity of Labor Demand," Working Papers 06-07, Center for Economic Studies, U.S. Census Bureau.
    7. Yona Rubinstein & Daniel Tsiddon, 2004. "Coping with Technological Change: The Role of Ability in Making Inequality so Persistent," Journal of Economic Growth, Springer, vol. 9(3), pages 305-346, September.

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    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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