Interindustry Variation in the Costs of Job Displacement

William J. Carrington · Asad Zaman

62 citations0/0 files storedJournal of Labor Economics

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Labor market dynamics and wage inequality Retirement, Disability, and Employment Education and Labor Relations

Abstract

Job displacement entails a substantial wage reduction for most displaced workers. We show that the mean reduction, the tenure profile of reductions, and the experience profile of reductions all vary substantially across industries. We then link this interindustry variation to analogous variation in firm size, unionization, wage levels, and the incidence of employer-provided training. While these industry characteristics explain some of the interindustry variation in mean wage reductions, they do not explain variation in the tenure or experience profiles of wage reductions.

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References

1983Human Capital 1992Earnings Losses of Displaced Workers 1993Wage Inequality and the Rise in Returns to Skill 1988Efficiency Wages and the Inter-Industry Wage Structure 1989The Employer Size-Wage Effect 1993The Incidence and Costs of Job Loss: 1982-91 1990Specific capital and unemployment: Measuring the costs and consequences of job loss 1987Job Displacement and Earnings Loss: Evidence from the Displaced Worker Survey

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