They Get Knocked Down. Do They Get Up Again?

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.

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“…2 2 See Borland et al 2002, Bender et al 2002, Burda and Mertens 2001, von Wachter and Bender 2006, and Carneiro and Portugal 2006. …”

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confidence: 99%

How Destructive Is Creative Destruction? Effects of Job Loss on Job Mobility, Withdrawal and Income

Huttunen

Møen

Salvanes

2011

Journal of the European Economic Association

161

140

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“…() for Germany, Huttunen, Møen and Salvanes (2011) for Norway, Borland et al . () and Hijzen, Upward and Wright (2010) for the UK, Margolis () for France, Carneiro and Portugal () for Portugal, Eliason and Storrie () for Sweden, Appelqvist () and Huttunen and Kellokumpu () for Finland.…”

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confidence: 99%

A Distributional Analysis of Earnings Losses of Displaced Workers in an Economic Depression and Recovery

Korkeamäki

Kyyrä

2013

Oxf Bull Econ Stat

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We study the earnings losses of Finnish private sector workers who lost their jobs at two very different points in the business cycle. The first group wdisplad in 1992 (depression period) and the second one in 1997 (recovery period). The focal point of the analysis is the quantile displacement effect, the change in the earnings distribution due to involuntary job separation. We use mass layoffs and plant closures to identify groups of workers who were displaced from exogenous causes. The effect of displacement is strongest at the lower end of the earnings distribution and small or negligible at the upper end. Workers displaced during the depression period are subject to much larger earnings losses.

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“…Borland et al . (2002) also use data from the BHPS but examine the impact of job displacement on a range of labour market outcomes.…”

Section: Background Literaturementioning

confidence: 99%

“…The Cox model is often estimated when confronted by duration data since, being a non‐parametric model, it specifies the baseline hazard very flexibly. Given that some of the applicants find a new job within a week of leaving their previous job, we follow Gu and Kuhn (1998) and Borland et al . (2002) by setting the time taken by this group to get a new job equal to 1 week and increasing all other durations by 1 8 .…”

Section: Econometric Analysismentioning

confidence: 99%

“…According to Borland et al (2002), the first UK evidence of unemployment on subsequent earnings comes from Gregory and Jukes (2001). 3 They report an initial average earnings penalty of over 10 per cent from losing a job compared with those who remained in their job but these losses decline over time, falling to around 4 per cent after 2 years and 2 per cent after this.…”

Section: Consequences Of Tribunal Claimsmentioning

confidence: 99%

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The post-application labour market consequences of employment tribunal claims

Drinkwater

Latreille

Knight

2011

Human Resource Management Journal

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This article examines the post‐application employment consequences for individuals registering complaints to Employment Tribunals following dismissal or redundancy. We consider several pieces of evidence: (a) the probability of finding another job, (b) the time taken to get a new job and (c) the pay/status of the new job. Our results indicate that age plays a significant role in aspects (a) and (c), while those who previously held managerial positions generally took longest to get a new job and found it most difficult to achieve a similar level of pay/status in their current jobs. Long‐term health problems/disability is associated with significantly worse outcomes on all three measures. Respondents whose cases were dismissed by tribunals without hearings fared worst in terms of obtaining a new job and the time it took to do so. There are, however, fewer differences by tribunal outcome in the relative pay/status of the claimant's current job.

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They Get Knocked Down. Do They Get Up Again?

Abstract: Losing work, moving on : international perspectives on worker displacement / Peter J. Kuhn, editor.p. cm. Includes bibliographical references and index.

Cited by 28 publications

References 7 publications

How Destructive Is Creative Destruction? Effects of Job Loss on Job Mobility, Withdrawal and Income

How Destructive Is Creative Destruction? Effects of Job Loss on Job Mobility, Withdrawal and Income

A Distributional Analysis of Earnings Losses of Displaced Workers in an Economic Depression and Recovery

The post-application labour market consequences of employment tribunal claims

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