The Costs of Worker Dislocation

Workers' Compensation: Analysis for Its Second Century

“…Adding those who reported that they earned a lot less to those who were no longer working, we get a figure of 18 to 27 percent of workers' compensation wage-loss claimants who were still suffering significant economic loss nearly three years after their injury, the major cause for this being lack of employment. It is worth noting that these results are roughly comparable to those for dislocated workers whose employers have closed completely (Jacobson, LaLonde, and Sullivan 1993).…”

Family Structure And Sex Differences In Postdisplacement Outcomes

“…Previous studies also find that, on average, displaced workers experience earnings losses (Farber, 1997;Jacobson, LaLonde, and Sullivan, 1993). The smaller wage losses among unmarried workers may be due in part to their younger average age because earnings losses tend to increase with age.…”

Industry- and occupation-specific skills of displaced workers

“…However, evidence suggests that the reward attached to transferable skills varies according to the destination industry (Ong and Mar, 1992;Jacobson, LaLonde and Sullivan, 1993;and Cha and Morgan, 2010). In their study of semiconductor firms in Silicon Valley, Ong and Mar (1992) found that displaced workers who were reemployed in the same 4-digit SIC industry or other high-tech industries suffered no wage loss, while workers who found jobs outside the high-tech sector accepted a considerable cut in wages.…”

“…In their study of semiconductor firms in Silicon Valley, Ong and Mar (1992) found that displaced workers who were reemployed in the same 4-digit SIC industry or other high-tech industries suffered no wage loss, while workers who found jobs outside the high-tech sector accepted a considerable cut in wages. For manufacturing workers, Jacobson, LaLonde and Sullivan (1993) found that the main determinant of wage loss after six years of displacement is whether he/she gets (or not) a job in the manufacturing sector, but the 4-digit SIC industry where the reemployment takes place is not relevant. Kletzer (1996) provides further arguments and reaches a slightly different conclusion.…”