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How Substitutable Are Workers? - Evidence from Worker Deaths

Author

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  • Jäger, Simon

    (Massachusetts Institute for Technology (MIT) ; IZA)

  • Heining, Jörg

    (Institute for Employment Research (IAB), Nuremberg, Germany ; IZA)

Abstract

"We estimate how exogenous worker exits affect firms’ demand for incumbent workers and new hires. Drawing on administrative data from Germany, we analyze 34,000 unexpected worker deaths, which, on average, raise the remaining workers’ wages and retention probabilities. The average effect masks substantial heterogeneity: Coworkers in the same occupation as the deceased see positive wage effects; coworkers in other occupations experience wage decreases when a high-skilled or specialized worker dies. Our findings imply substantial replacement costs, which are larger in thin markets and when skills are specialized." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Jäger, Simon & Heining, Jörg, 2022. "How Substitutable Are Workers? - Evidence from Worker Deaths," IAB-Discussion Paper 202226, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202226
    DOI: 10.48720/IAB.DP.2226
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    Keywords

    Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; Auswirkungen ; berufliche Spezialisierung ; Berufsgruppe ; Einarbeitungskosten ; Einkommenseffekte ; abhängig Beschäftigte ; Integrierte Erwerbsbiografien ; interner Arbeitsmarkt ; Kleinbetrieb ; Mitarbeiter ; Personaleinstellung ; Personalersatzbedarf ; Sterblichkeit ; Arbeitsplatzsicherheit ; 1975-2011;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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