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The Incidence and Consequence of Worker Displacement in Australia

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  • Colin Green
  • Gareth Leeves

Abstract

This paper analyses displacement risk and its consequences for re‐employment in Australia using data from the Survey of Employment and Unemployment Patterns (SEUP). We confirm overseas evidence that older workers and those from lower skill occupations are, in general, at a greater risk of displacement. By contrast, unlike US studies, no systematic link between tenure in job and displacement risk was found. Consistent with previous Australian research (Borland and McDonald, 2001) we find that males face a higher incidence of displacement than females. Decomposition of the gender difference revealed that industry effects are an important source of disparity in displacement rates. Analysis of re‐employment hazards indicated that workers displaced from manufacturing faced increased periods of non‐employment. Hence, it appears that there is a role for provisions to help workers in industries where the effects of structural reform have been concentrated (Kletzer, 1998).

Suggested Citation

  • Colin Green & Gareth Leeves, 2003. "The Incidence and Consequence of Worker Displacement in Australia," Australian Economic Papers, Wiley Blackwell, vol. 42(3), pages 316-331, September.
    • Handle: RePEc:bla:ausecp:v:42:y:2003:i:3:p:316-331
    DOI: 10.1111/1467-8454.00201
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    References listed on IDEAS

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    1. Leonard, Jonathan & Van Audenrode, Marc, 1995. "The Duration of Unemployment and the Persistence of Wages," CEPR Discussion Papers 1227, C.E.P.R. Discussion Papers.
    2. Borland, J. & McDonald, J.T., 2000. "Displaced workers in Australia 1984-1996: Macroeconomic Conditions and Structural Change," Papers 2000-10, Tasmania - Department of Economics.
    3. Yun, Myeong-Su, 2000. "Decomposition Analysis for a Binary Choice Model," IZA Discussion Papers 145, Institute of Labor Economics (IZA).
    4. Abbring, Jaap H. & Berg, Gerard J. van den & Gautier, Pieter A., 1998. "Displaced workers in the Netherlands," Serie Research Memoranda 0038, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    5. John Mangan, 2000. "Workers Without Traditional Employment," Books, Edward Elgar Publishing, number 1963.
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