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Occupational human capital and earnings losses of displaced workers: does the degree of similarity between pre- and post-displacement occupations matter? (Berufliches Humankapital und Einkommensverluste von freigesetzten Arbeitskräften: Wie sehr kommt es darauf, dass sich die Beschäftigungsverhältnisse vor und nach dem Arbeitsplatzverlust ähneln?)

Author

Listed:
  • Nawakitphaitoon, Kritkorn

    (School of Labor and Human Resources, Renmin University of China, Peking)

  • Ormiston, Russell

    (Department of Economics, Allegheny College, Meadville, PA, USA)

Abstract

"This paper examines the effect of accumulated human capital, and particularly occupational human capital, on the earnings losses of displaced workers. Unlike most of the previous studies of job displacement, this paper uses a continuous measure of occupational skills transferability to measure the similarity between the pre- and post-displacement occupations of reemployed displaced workers. Using the 2004, 2006, 2008, and 2010 Displaced Worker Survey (DWS), the main finding is that post-displacement earnings losses are highly correlated with the degree of similarity between pre- and post-displacement occupations. Displaced workers who find jobs in occupations similar to their previous jobs suffer smaller earnings losses than those who find less similar jobs. This relationship is non-linear in that higher skills transferability reduces the earnings losses at a decreasing rate as the transferability of occupational skills increases." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Nawakitphaitoon, Kritkorn & Ormiston, Russell, 2015. "Occupational human capital and earnings losses of displaced workers: does the degree of similarity between pre- and post-displacement occupations matter? (Berufliches Humankapital und Einkommensverlus," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 48(1), pages 57-73.
  • Handle: RePEc:iab:iabjlr:v:48:i:1:p:057-073
    DOI: 10.1007/s12651-014-0169-y
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    References listed on IDEAS

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    1. Gueorgui Kambourov & Iourii Manovskii, 2009. "Occupational Specificity Of Human Capital," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 63-115, February.
    2. Lori G. Kletzer & Robert W. Fairlie, 2003. "The Long-Term Costs of Job Displacement for Young Adult Workers," ILR Review, Cornell University, ILR School, vol. 56(4), pages 682-698, July.
    3. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
    4. Burda, Michael C. & Mertens, Antje, 2001. "Estimating wage losses of displaced workers in Germany," Labour Economics, Elsevier, vol. 8(1), pages 15-41, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    USA ; berufliche Qualifikation ; berufliche Reintegration ; Berufserfahrung ; Bildungsertrag ; Einkommenseffekte ; Lohnhöhe ; Qualifikationsanforderungen ; Tätigkeitsmerkmale ; Arbeitsplatzverlust ; 2004-2010;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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