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Re‐employment after Retrenchment: Evidence from the TCF Industry Study

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  • Sally Weller
  • Michael Webber

Abstract

Industry Commission inquiries into the passenger motor vehicle and textiles clothing and footwear (TCF) industries have focused attention on the employment prospects of workers who are displaced as a result of structural change. The fact that older and less skilled workers face considerable difficulty finding new employment is now widely recognised. In this paper we examine the post‐retrenchment outcomes for workers retrenched from jobs in the TCF sector. The method of analysis–discrete‐time event history analysis–improves on previous studies of post‐retrenchment out‐comes because labour market conditions are incorporated into the statistical model, redressing the over‐emphasis on supply‐side issues that characterise previous research. The analysis shows that local and national labour market conditions are important determinants of employment outcomes. Personal characteristics, household circumstances and ascribed skill are also important as employers use these attributes to filter potential recruits. The analysis suggests that the utility of retraining is variable, enhancing the employability of workers with the best prospects (based on their personal characteristics and skills) before taking up retraining but decreasing the employment chances of those with poorer prospects.

Suggested Citation

  • Sally Weller & Michael Webber, 1999. "Re‐employment after Retrenchment: Evidence from the TCF Industry Study," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(2), pages 105-129, June.
    • Handle: RePEc:bla:ausecr:v:32:y:1999:i:2:p:105-129
    DOI: 10.1111/1467-8462.00099
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    Cited by:

    1. Marks Andrew, 2013. "The Globalization of the Australian Textile, Clothing, Footwear and Motor Vehicle Industries: Results in Line with Other Western Market Economies," Global Economy Journal, De Gruyter, vol. 13(1), pages 129-150, January.
    2. Sally Weller & Michael Webber, 2004. "Ansett Airlines Employees: A Preliminary Survey of Post-Retrenchment Outcomes," The Economic and Labour Relations Review, , vol. 14(2), pages 305-330, January.
    3. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers and Notes 29142, The World Bank.
    4. Tom Barnes & Joshua M Roose & Lisa Heap & Bryan S Turner, 2016. "Employment, spillovers and ‘decent work’: Challenging the Productivity Commission’s auto industry narrative," The Economic and Labour Relations Review, , vol. 27(2), pages 215-230, June.

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