The Firm's Role in Displaced Workers' Earnings Losses

Moore, Brendan; Scott-Clayton, Judith

doi:10.3386/w26525

Cited by 16 publications

(8 citation statements)

References 48 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Our finding that earnings losses for all job changers are driven by movements down the job ladder is consistent with other research indicating that earnings losses of displaced workers are, in part, attributable to movements to lower-paying firms (Schmieder, von Wachter, and Heining, 2020;Fackler, Müller, and Stegmaier, 2021;Raposo, Portugal, and Carneiro, 2021;Lachowska, Mas, and Woodbury, 2020;Moore and Scott-Clayton, 2019). Our results are most comparable to those of Schmeider, von Wachter, and Heining (2020), who find that displaced workers who spend more time in nonemployment fall further down the job ladder.…”

Section: Introductionsupporting

confidence: 91%

Job Displacement and Job Mobility: The Role of Joblessness

Fallick

Haltiwanger

McEntarfer

et al. 2021

Working Paper (Federal Reserve Bank of Cleveland)

View full text Add to dashboard Cite

Who is harmed by and who benefits from worker reallocation? We investigate the earnings consequences of changing jobs and find a wide dispersion in outcomes. This dispersion is driven not by whether the worker was displaced, but by the duration of joblessness between job spells. Job movers who experience joblessness suffer a persistent reduction in earnings and tend to move to lower-paying firms, suggesting that job ladder models offer a useful lens through which to understand the negative consequences of job separations.

show abstract

Section: Introductionsupporting

confidence: 91%

Job Displacement and Job Mobility: The Role of Joblessness

Fallick

Haltiwanger

McEntarfer

et al. 2021

Working Paper (Federal Reserve Bank of Cleveland)

View full text Add to dashboard Cite

show abstract

“…Most of the "enrollment effect" occurs within the first year after displacement. Even though effects of displacement on enrollment seem small, it's worth noting that the causal effect of displacement on employment is only about 10 percentage points (Moore and Scott-Clayton, 2019).…”

Section: Resultsmentioning

confidence: 99%

“…To infer the causal effect of displacement on various educational outcomes, we apply the standard multi-period individual fixed effect with comparison group model that has frequently been used to measure the effect of job loss on earnings (Jacobson et al, 1993;Davis and Von Wachter, 2011;Lachowska et al, 2019;Moore and Scott-Clayton, 2019). Our preferred measure of enrollment is cumul enroll it , an indicator which assumes zero for each worker i until the first time she enrolls in a public college or university.…”

Section: Empirical Approachmentioning

confidence: 99%

The Effect of Job Displacement on College Enrollment: Evidence from Ohio

Minaya

Moore²,

Scott-Clayton

2020

Self Cite

View full text Add to dashboard Cite

Displaced workers su er large and persistent earnings losses. These losses can be mitigated by returning to school, yet the extent to which such workers enroll in post-secondary education in response to displacement is poorly understood. Using employer-employee-student matched administrative data from Ohio, we provide the rst direct evidence of workers' enrollment responses following mass layo s in the United States. Close to 10% of these displaced workers enroll in public two-or four-year colleges after displacement, with the typical enrollment persisting for ve semesters and 29% completing a degree. However, much of this enrollment may have occurred regardless of the displacement. To estimate a causal e ect, we compare displaced workers over time to similar non-displaced workers. We estimate that for every 100 displaced workers, only about 1 is ever induced to enroll in a public college as a result. This e ect is concentrated almost entirely among displaced manufacturing workers, who enroll at a rate of 2.5 per every 100. Such workers with lower within-rm earnings and from local labor markets with limited for-pro t college options are the most likely to enroll in public institutions.

show abstract

“…Fourth, our paper adds to the research investigating the consequences of job displacement. This literature has found that the decline in earnings after being displaced can be large and long-lasting (Jacobson et al, 1993;Couch and Placzek, 2010;Davis and Von Wachter, 2011;Lachowska et al, 2020) and depend on the business cycle and employer characteristics (Schmieder et al, 2018;Moore and Scott-Clayton, 2019). 12 We contribute to this literature by demonstrating that policy-induced reductions in household leverage can mitigate the loss of income following a job loss.…”

Section: Introductionmentioning

confidence: 87%