Too Many Changes? Post-Displacement Job Mobility and Wages: an Analysis of Displaced Workers in Portugal

This research project aims to investigate the impact of post-displacement job mobility on wage dynamics for displaced workers (i.e. workers who lost their jobs due to firm closures) in the Portuguese labor market. The study utilizes a nationally representative matched employer-employee dataset and a multi-dimensional fixed effects event study model to estimate the differences in wage trajectories for displaced workers who experience post-displacement occupational, industrial and geographic mobility compared to the displaced workers who do not. The findings reveal that changes in job title significantly impact wage trajectories, with workers experiencing occupational mobility facing significantly worse outcomes even five to six years after displacement. Geographical mobility also shows negative effects, particularly for women. However, no significant differences are found for workers who move from one industry to another. This study contributes to the existing literature on factors impacting wage dynamics and provides insights valuable for individual career choices and governmental policy-making.