Job Ladders and Earnings of Displaced Workers

Job Heterogeneity and Aggregate Labor Market Fluctuations

“…To remain consistent with the model, I treat unemployment and out-of-the-labor-force as the same state when calculating layoff rates. This is also why I use the terms nonemployment and unemployment interchangeably in the text.10 In other work(Krolikowski, 2017) I have shown that these data imply average transition probabilities that are broadly consistent with values obtained from the Survey of Income and Program Participation (SIPP) and the Current Population Survey (CPS).…”

“…Smoothing is performed using a locally weighted (LOWESS) regressions scatter-plot smoothing. This figure is taken fromKrolikowski (2017).…”

“…For brevity I omit timing, the bargaining structure, and most of the recursive equations. For more elaboration, seeKrolikowski (2017).…”

Parental Proximity and Earnings after Job Displacements

“…Ideally, these new data would also facilitate additional analyses that focus on the mechanisms leading to our baseline results. We think that building and estimating a model that incorporates parental location (Kennan and Walker, 2011;Coate, 2017) and matches well the earnings losses of displaced workers (Jarosch, 2015;Krolikowski, 2017b) is a particularly fruitful way to proceed. Figure 1: In the medium-and long-run, young workers living in the same neighborhoods with their parents experience a full recovery in earnings after a displacement event.…”

Parental proximity and earnings after job displacements

“…Ideally, these new data would also facilitate additional analyses that focus on the mechanisms leading to our baseline results. We think that building and estimating a model that incorporates parental location (Kennan and Walker, 2011;Coate, 2017) and matches well the earnings losses of displaced workers (Jarosch, 2015;Krolikowski, 2017b) is a particularly fruitful way to proceed. Note: The regression analysis supports the basic intuition in Figure 1: In the medium-and long-run, young workers living in the same neighborhoods with their parents experience a full recovery in earnings after a displacement event.…”