Earnings Losses of Displaced Workers

Jacobson, Louis; Lalonde, Robert; Sullivan, Daniel G.

doi:10.17848/wp92-11

Cited by 1,603 publications

(1,933 citation statements)

References 19 publications

Supporting

Mentioning

1,813

Contrasting

Unclassified

Order By: Relevance

“…For instance, a single occurrence of unemployment leaves a significant scar on re-employment wages (Jacobson et al, 1993), which becomes larger with more frequent (Stevens, 1997) and longer unemployment spells (Gangl, 2004;Gregory and Jukes, 2001). While this process is evident across gender, literature suggests two major factors that lead to a diverging human capital depreciation among previously unemployed men and women.…”

Section: Human Capital Depreciation and Unemployment Scarringmentioning

confidence: 99%

“…Early unemployment has been found detrimental for workers' future employment opportunities because it reduces the future likelihood to be hired, and inflicts a setback in re-employment wages that perpetuates long after the initial unemployment occurrence (Arulampalam, 2001;DiPrete, 1981;DiPrete and McManus, 2000;Gangl, 2004Gangl, , 2006Gregg, 2001;Jacobson et al, 1993;Kuhn, 2002;Moore, 2010;Ruhm, 1991). This wage setback is referred to in the literature as 'unemployment scarring'.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Unemployment scarring by gender: Human capital depreciation or stigmatization? Longitudinal evidence from the Netherlands, 1980–2000

Mooi‐Reci¹,

Ganzeboom²

2015

Social Science Research

View full text Add to dashboard Cite

a b s t r a c tUsing longitudinal data from the Dutch Labor Force Supply Panel (OSA), this article examines how unemployment scarring (i.e., wage setbacks following unemployment) and its underlying mechanisms operate across gender in the Netherlands over the period 1985-2000. A series of fixed effect panel models that correct for unobserved heterogeneity, reveal a notable disparity in unemployment scarring by gender. Interestingly, while unemployment scarring is short-lived and partly conditional upon human capital differences among women, it is strongly persistent among men and contingent upon old age, ethnicity, and tight economic conditions. Our findings provide new evidence regarding unemployment scarring by gender while they support the hypothesis that among women the effects of unemployment scarring are predominantly driven by human capital depreciation, while among men stigma effects dominate.

show abstract

Section: Human Capital Depreciation and Unemployment Scarringmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Unemployment scarring by gender: Human capital depreciation or stigmatization? Longitudinal evidence from the Netherlands, 1980–2000

Mooi‐Reci¹,

Ganzeboom²

2015

Social Science Research

View full text Add to dashboard Cite

show abstract

“…If the displaced worker had not lost his or her job, earnings would likely have grown over the interval between the date of job loss and the DWS survey date. See Jacobson, Lalonde, and Sullivan (1993). Farber (2005) show that full-time workers who find a new job earn about 13 percent less on average at their new jobs than on their lost jobs.…”

Section: The Displaced Worker Surveysmentioning

confidence: 99%

Has the Displacement of Older Workers Increased?

et al. 2006

View full text Add to dashboard Cite

“…The effects also vary in terms of their persistence: for example, Ruhm (1991) and Jacobson, LaLonde, and Sullivan (1993) show that earnings from subsequent jobs after an involuntary job change remain significantly lower in comparison to a group without job loss. Other long lasting effects of involuntary job loss appear in the realm of the family, where significant increases in divorce probability have been found (Charles and Stephens, 2004) or fertility decisions are affected as children are being born later or not at all (Bono, Weber, and Winter-Ebmer, 2008).…”

Section: Introductionmentioning

confidence: 99%

“…However, for investigating the consequences of job loss it is clearly superior to using all individuals who lost their jobs without differentiating for the reason. Ruhm (1991) and Jacobson, LaLonde, and Sullivan (1993) used job loss due to plant closures when investigating the effects of involuntary job loss on wages, finding that there are long-term reductions in earnings for those who had lost their job. Sullivan and von Wachter (2009) transferred the approach to investigate the health consequences of displacement.…”

Section: Introductionmentioning

confidence: 99%

Jobless now, sick later? Investigating the long-term consequences of involuntary job loss on health

Schröder

2013

Advances in Life Course Research

View full text Add to dashboard Cite

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. Terms of use: Documents in AbstractIn the light of the current economic crises which in many countries lead to business closures and mass lay-offs, the consequences of job loss are important on various dimensions. They have to be investigated not only in consideration of a few years, but with a long-term perspective as well, because early life course events may prove important for later life outcomes. This paper uses data from SHARELIFE to shed light on the long-term consequences of involuntary job loss on health.The paper distinguishes between two different reasons for involuntary job loss: plant closures, which in the literature are considered to be exogenous to the individual, and lay-offs, where the causal direction of health and unemployment is ambiguous. These groups are separately compared to those who never experienced a job loss. The paper uses eleven different measures of health to assess long-term health consequences of job loss, which has to have occurred at least 25 years before the current interview. As panel data cannot be employed, a large body of variables, including childhood health and socio-economic conditions, is used to control for the initial conditions.The findings suggest that individuals with an exogenous job loss suffer in the long run: men are significantly more likely to be depressed and they have more trouble knowing the current date. Women report poorer general health and more chronic conditions and are also affected in their physical health: they are more likely to be obese or overweight, and to have any limitations in their (instrumental) activities of daily living. In the comparison group of laid-off individuals, controlling for the initial conditions reduces the effects of job loss on healthproving that controlling for childhood conditions is important.3

show abstract

Earnings Losses of Displaced Workers

Cited by 1,603 publications

References 19 publications

Unemployment scarring by gender: Human capital depreciation or stigmatization? Longitudinal evidence from the Netherlands, 1980–2000

Unemployment scarring by gender: Human capital depreciation or stigmatization? Longitudinal evidence from the Netherlands, 1980–2000

Has the Displacement of Older Workers Increased?

Jobless now, sick later? Investigating the long-term consequences of involuntary job loss on health

Contact Info

Product

Resources

About