We analyze short and long‐term effects of worker displacement. Our sample consists of male workers displaced from Norwegian manufacturing plants. We find that displacement increases the probability of leaving the labor force by 31%. The drop‐out rate from the labor force is particularly high in the first years following displacement. The average earnings effects for those who remain in the labor force are moderate, a 3% loss relative to non‐displaced workers after seven years. Splitting displaced workers on within‐ and between‐firm movers, we find that the estimated earnings loss is entirely driven by between‐firm movers who experience a 3.6% loss. Transfers to other plants within multi‐plant firms upon displacement are quite common. Our results support the view that human capital is partly firm specific and partly industry specific. We find no evidence suggesting that human capital is plant specific.
This paper examines the effect of foreign acquisition on wages and employment of different skill groups using panel data on Finnish establishments for [1988][1989][1990][1991][1992][1993][1994][1995][1996][1997][1998][1999][2000][2001]. Exploiting the availability of a rich set of pre-acquisition controls, we use various regression and propensity score matching methods. The results indicate that foreign acquisition has a positive effect on wages. The magnitude of this effect increases with the level of schooling of the workers. The wage increase is not immediate, but happens within 1-3 years from the acquisition. Surprisingly, the results indicate that acquired plants reduce the share of highly educated workers in their employment. JEL Classification: C33, F16, F23, J31
his paper analyzes the effects of job displacement on fertility using Finnish longitudinal register data. We focus on couples where one spouse has lost a job due to a plant closure and follow them for several years before and following the job loss. The results show that female job loss decreases fertility. For every 100 displaced females, there are three fewer children born. Male job loss has no impact on fertility despite resulting in a stronger decrease in family income than female job loss. This indicates that the income effect is not the mechanism through which job displacement influences fertility.
We study the migration behavior of displaced workers and find that job displacement increases regional mobility. We find, however, that non-economic factors such as family ties are very important for the migration decision, and that there is strong heterogeneity in outcomes. We find large income losses for workers who move to regions where they have family or to rural areas, while e.g. rural to urban movers realize a significant long-term increase in earnings. We also find that life events related to fertility, divorce and new relationships correlate with mobility after job loss and may partly explain the large income losses. Acknowledgements:We thank Sandy Black, Paul Oyer, Matti Sarvimäki, Steve Trejo and seminar participants at the
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.IZA Discussion Paper No. 4931 May 2010 ABSTRACTThe Employment Effects of Low-Wage Subsidies * Low-wage subsidies are often proposed as a solution to the unemployment problem among the low skilled. Yet the empirical evidence on the effects of low-wage subsidies is surprisingly scarce. This paper examines the employment effects of a Finnish payroll tax subsidy scheme, which is targeted at the employers of older, full-time, low-wage workers. The system's clear eligibility criteria open up an opportunity for a reliable estimation of the causal impacts of the subsidy, using a difference-in-difference-in-differences approach. Our results indicate that the subsidy system had no effects on the employment rate. However, it appears to have increased the probability of part-time workers obtaining full-time employment.JEL Classification: H24, J23, J68
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