Occupational Routine-Intensity and the Costs of Job Loss: Evidence from Mass Layoffs

Blien, Uwe; Dauth, Wolfgang; Roth, Duncan

doi:10.2139/ssrn.3513693

Cited by 6 publications

(16 citation statements)

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“…Another issue, which is often discussed and might arise due to lack of exogenous variation, is selectivity in workers. Therefore, related studies on job loss often use mass layoff events in order to exclude the worker herself as a cause for unemployment incidence (Blien et al, 2021;Burdett et al, 2020;Jarosch, 2021). Since the data provides enough observations, I follow largely the approach of Davis and von Wachter (2011) in order to identify mass layoff or plant closures and displaced workers.…”

Section: Discussion Selectivity and Endogeneitymentioning

confidence: 99%

“…This matching approach reduces imbalances in covariates between workers affected (treated) and not affected (control group) by unemployment incidence (see e.g. Blien et al. , 2021).…”

Section: Research Design and Identificationmentioning

confidence: 99%

Section: Research Design and Identificationmentioning

confidence: 99%

“…This matching approach reduces imbalances in covariates between workers affected (treated) and not affected (control group) by unemployment incidence (see e.g. Blien et al, 2021). The main motivation for the additional matching procedure is to account for potential differences in observable characteristics between the treated and control group.…”

Section: Research Design and Identificationmentioning

confidence: 99%

“…For the matching procedure, I chose for the treated group the last observation before unemployment incidence. For the control group, I chose a randomized observation for each worker (similar to Blien et al. , 2021).…”

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confidence: 99%

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Unemployment and its scarring effect on wages in Germany: evidence from linked employer-employee data

Jost

2021

IJM

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PurposeAssess and compare scarring effects of unemployment in Germany to other countries and to consider firm heterogeneity.Design/methodology/approachThe author uses linked employer-employee data to analyze the effect of unemployment and its duration on future wages in Germany. Using administrative data on workers and firms in Germany and considering registered and unregistered unemployment episodes, the results show long-lasting wage losses caused by unemployment incidences. Furthermore, the estimations indicate that unemployment duration as well as selectivity into firms paying lower wages is of particular relevance for the explanation of wage penalties of re-employed workers.FindingsUnemployment causes massive and persistent wage declines in the future, which depend on the unemployment duration. Furthermore, reduced options of unemployed workers and selectivity in firms contribute to a large part of unemployment scarring.Practical implicationsFindings are relevant for current debates on unemployment and can help design measures to avoid huge costs of unemployment.Originality/valueThis paper analyses long-term unemployment scarring by considering not only unemployment duration but also selectivity in firms and its effect on the scarring effect.

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Section: Discussion Selectivity and Endogeneitymentioning

confidence: 99%

“…This matching approach reduces imbalances in covariates between workers affected (treated) and not affected (control group) by unemployment incidence (see e.g. Blien et al. , 2021).…”

Section: Research Design and Identificationmentioning

confidence: 99%