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Source: Center for Labor Economics, University of California, Berkeley
Resulting in 1 citation.
1. Gustafson, Cynthia Karen
Job Displacement and Mobility of Younger Workers
Working Paper 8, The Center for Labor Economics, University of California - Berkeley, 1998
Cohort(s): NLSY79
Publisher: Center for Labor Economics, University of California, Berkeley
Keyword(s): Displaced Workers; Earnings; Employment, Youth; Mobility, Job; Modeling, Fixed Effects

Permission to reprint the abstract has not been received from the publisher.

This paper explores the long-term effects of job displacement on younger workers and how these effects depend on post-displacement mobility across location, industry and occupation. Data from the National Longitudinal Survey of Youth are used to construct a group of displaced workers and a comparison group containing non-displaced workers. Using a generalized "difference-in differences" model that includes individual fixed effects, I estimate what displaced workers' employment status, earnings, and hours worked would have been had they not been displaced and how these effects vary by post-displacement mobility decisions. I find that displacement has a large negative effect on employment, earnings, and hours worked. Seven percent of displaced workers are not employed six years after displacement yet would have been but for displacement. Among individuals who return to work, displacement decreases workers' earnings and hours worked by 14% and 8%, respectively, in the long-term. Workers who move locations find a long-term earnings cost of 10% compared with immobile workers' cost of 15%. Contrary to previous findings, workers who switch either industry or occupation have similar long-term earnings losses as workers who stay in their same industry or occupation. The effects of mobility, however, vary largely when conditioning on a worker characteristic. Copyright (c) 2001 Cambridge University Press
Bibliography Citation
Gustafson, Cynthia Karen. "Job Displacement and Mobility of Younger Workers." Working Paper 8, The Center for Labor Economics, University of California - Berkeley, 1998.