The Effects of Job Displacement on Post-Displacement Earnings

Résumé du livre

The purpose of this research is to examine the long-term effects of job displacement on the subsequent earnings of displaced workers. Previous empirical research has suggested that job displacement reduces the short-term post-displacement earnings an average of about 15 percent relative to what their earnings would have been had they not been displaced. This research uses a fixed effects model and data over a 22-year period from the PSID to assess the long-term earnings effects of job displacement. The results support and extend previous research in finding that earnings losses due to job displacement are substantial and persist for many years.