Job Displacement, Relative Wage Changes, and Duration of Unemployment

Addison, John T.; Portugal, Pedro

doi:10.1086/298209

Cited by 197 publications

(174 citation statements)

References 24 publications

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“…see Stern (1989), or that the difference between the OLS estimates and the IV estimates is generally statistically insignificant, e.g. see Addison and Portugal (1989). These findings corroborate what has already been found by macro modellers.…”

Section: _________________________supporting

confidence: 84%

Resurgence of the Endogeneity-Backed Instrumental Variable Methods

Qin

2015

Economics

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This paper investigates the nature of the IV method for tackling endogeneity. By tracing the rise and fall of the method in macroeconometrics and its subsequent revival in microeconometrics, it pins the method down to an implicit model respecification devicebreaking the circular causality of simultaneous relations by redefining it as an asymmetric one conditioning on a non-optimal conditional expectation of the assumed endogenous explanatory variable, thus rejecting that variable as a valid conditional variable. The revealed nature explains why the IV route is popular for models where endogeneity is superfluous whereas measurement errors are of the key concern.

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Section: _________________________supporting

confidence: 84%

Resurgence of the Endogeneity-Backed Instrumental Variable Methods

Qin

2015

Economics

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“…In nominal terms, however, we would expect higher employment levels to be accompanied by lower wages. A simulation 11The estimated coefficient on lagged wages is similar to that found by Addison and Portugal (1989). They include duration of unemploy1nent in the reemployment wage equation instead of a selectivity correction.…”

Section: Effects On Employment and Earningsmentioning

confidence: 63%

“…Eliminating children whose pa.rents would 5We are relying upon Francis et al (1955). See also Brownlee (1954) and Meier (1972).…”

Section: Bias In Social Experimentsmentioning

confidence: 99%

Experimental estimates of the impact of wage subsidies

Dubin

Rivers

1993

Journal of Econometrics

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The effects of a wage subsidy program on the duration of insured unemployment are investigated using experimental data. Participation in the experiment was voluntary and about one third of the subjects refused to take the subsidy voucher offered to them. Because subsidies appear to have stigmatic effects which tend to lower participation rates by high-skilled workers, experimental participants have longer average durations of unemployment than non-participants. However, correcting for self-selection, we find that wage subsidies can substantially increase a participant's probability of reemployment. Subsidies are also compared to a search bonus proposal which is also cost effective, but, due to differences in participation patterns, has rather different effects.

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“…The innovation of this study was the use of a longitudinal administrative dataset from Pennsylvania. Earlier studies usually used survey data from the Displaced Workers Survey (Podgursky and Swaim 1987;Kletzer 1989;Addison and Portugal 1989;Gibbons and Katz 1991;Carrington 1993;Fallick 1993), or the Michigan Panel Study of Income Dynamics (Ruhm 1991). Another novelty in job displacement studies of the early 1990s was the inclusion of a control group of nondisplaced workers (Ruhm 1991;Jacobson et al 1993).…”

Section: A Growing Body Of Plant Closure Literaturementioning

confidence: 99%

The Debate About the Consequences of Job Displacement

Baumann

2016

Life Course Research and Social Policies

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Since the 1970s scholars have shown an increasing interest in the study of the social and economic consequences of plant closure. One strand of research addresses the topic from an economic perspective, investigating the impact of plant closure on workers' occupational trajectory and financial situation. The main interests of these studies are reemployment rates, unemployment durations and wage differences between the pre-and post-displacement job. Another strand of research strives at understanding the nonpecuniary costs of unemployment, addressing the consequences of job displacement in terms of workers' well-being and social life. We try to bridge these different research interests and will propose a model to investigate the impact of plant closure on workers' lives in a more encompassing way.In this chapter we discuss the literature on the consequences of job displacement on displaced workers' occupational situation, their sociability and well-being. The first section focuses on reemployment, unemployment and labor force exit. A second section discusses the type and quality of the post-displacement jobs. Third, we address how workers' sociability and subjective well-being are affected by job loss. We conclude by suggesting a theoretical model of occupational transitions after plant closure and present our hypotheses.

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Job Displacement, Relative Wage Changes, and Duration of Unemployment

Cited by 197 publications

References 24 publications

Resurgence of the Endogeneity-Backed Instrumental Variable Methods

Resurgence of the Endogeneity-Backed Instrumental Variable Methods

Experimental estimates of the impact of wage subsidies

The Debate About the Consequences of Job Displacement

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