The Costs of Worker Dislocation

Abstract

The authors use findings from this study, in conjunction with their comprehensive interpretation of existing worker dislocation literature, to develop policy recommendations concerning prevailing and potential assistance programs. They conclude by proposing that any new policies designed to compensate dislocated workers should target those suffering the greatest losses while providing incentives to take new jobs - even if lower paying - as soon as possible. Programs which allow dislocated workers to receive compensation after regaining employment (modified earnings subsidies) are promoted as practical and financially feasible.

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