Wage Losses for Displaced Workers: Is It Really the Firm That Matters?

Carrington, William J.

doi:10.2307/146154

Cited by 141 publications

(117 citation statements)

References 13 publications

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“…First, they find that while earnings losses were substan tial for displaced workers who found new jobs in the same industries, losses were even greater for those who changed industrial sectors. Using 1984 DWS data, Addison and Portugal (1989) also report that wage losses associated with a change in industry or occupation, but not location, are greater than wage losses for displaced workers not obliged to make such shifts.4 Similarly, Carrington (1993) finds, using 1984finds, using , 1986finds, using , and 1988, that much of the wage loss suffered by displaced workers is the result of downturns in entire industries rather than of firm-specific declines in demand. That is, displaced workers tend to be victims of "industrial restructuring.…”

Section: Introductionmentioning

confidence: 97%

Assisting Workers Displaced by Structural Change: An International Perspective

Leigh¹

1995

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Section: Introductionmentioning

confidence: 97%

Assisting Workers Displaced by Structural Change: An International Perspective

Leigh¹

1995

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“…A study based on the US Displaced Worker Survey has reported that tenure negatively affects wages twice as much if workers change sector as compared to staying (Neal 1995: 657). Moreover, high firm tenure leads to large wage losses upon reemployment (Carrington 1993;Greenaway et al 2000: 66;Kletzer 2001: 59;Cha andMorgan 2010: 1145;Couch and Placzek 2010). These findings have been explained with the argument that workers with high tenure received returns on firm-specific knowledge in their predisplacement job but not from a new employer.…”

Section: Determinants Of Post-displacement Wagesmentioning

confidence: 99%

“…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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“…Conversely, reductions in Farber (1996) shows that the three-year probability of job loss among workers 55 and over rose from 11 percent in 981 to more than 16 percent in 1993. Between 1981 and1993, workers 55 to 64 experienced the largest increase in job loss probabilities for any age group.…”

Section: Introductionmentioning

confidence: 99%

“…% Howland and Peterson (1988) find that even when displaced in a growing local economy, most older poorly educated blue-collar workers with long tenure at their pre-layoff job, suffered disproportionately large financial losses. Similarly, Carrington (1993) shows the importance of local labor market conditions to post-displacement worker outcomes. For all of these reasons, we should expect job loss to affect the employment and retirement decisions of older workers.…”

mentioning

confidence: 99%

Job Loss and Retirement Behavior of Older Men

Chan¹,

Stevens²

1999

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Displaced workers in their fifties are estimated to have a three in four chance of returning to work within two years after a job loss, whereas for a 62-year-old job loser, the probability is less than a third. Once re-employed, workers of all ages initially face significantly higher probabilities of exiting the workforce than do workers who have not experienced a recent job loss; however, this effect gradually reverses over time. The net outcome of these entry and exit rates is a substantial gap between the employment rates of men who have and have not lost jobs, that lasts at least seven years. The employment rates of men who lose jobs in their fifties eventually converge with those of non-displaced workers of the same age, as the latter retire at a rapid rate during their sixties. JEL Nos. J64, J26 Terms of use: Documents in

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Wage Losses for Displaced Workers: Is It Really the Firm That Matters?

Cited by 141 publications

References 13 publications

Assisting Workers Displaced by Structural Change: An International Perspective

Assisting Workers Displaced by Structural Change: An International Perspective

The Debate About the Consequences of Job Displacement

Job Loss and Retirement Behavior of Older Men

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