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Labour market effects of job displacement for prime-age and older workers

Author

Listed:
  • Anja Deelen

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Marloes de Graaf-Zijl

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Wiljan van den Berge

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

This paper studies the effects of firm closures associated with bankruptcies on the employment status and wages of prime-age and older workers using Dutch administrative data for the period 2000–2011. Applying difference-in-differences techniques and non-parametric matching, we find adverse effects on the probability to be in work and on wages earned in the new job, which are larger for older workers than for prime-age workers. Within the older-age group, the effects are stronger for formerly long-tenured workers, for older workers who lost their job in declining sectors in the regional labour market and for workers who changed sectors. In the prime-age group, these differences are less pronounced. Our results suggest that job- and sector-specific factors are important for understanding the more vulnerable position of older workers after job loss.

Suggested Citation

  • Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    • Handle: RePEc:spr:izalbr:v:7:y:2018:i:1:d:10.1186_s40172-018-0063-x
    DOI: 10.1186/s40172-018-0063-x
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    More about this item

    Keywords

    Firm closures; Older workers; Unemployment;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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