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Job Displacement and Job Mobility: The Role of Joblessness

Author

Listed:
  • Bruce Fallick
  • John C. Haltiwanger
  • Erika McEntarfer
  • Matthew Staiger

Abstract

Who is harmed by and who benefits from worker reallocation? We investigate the earnings consequences of changing jobs and find a wide dispersion in outcomes. This dispersion is driven not by whether the worker was displaced, but by the duration of joblessness between job spells. Job movers who experience joblessness suffer a persistent reduction in earnings and tend to move to lower-paying firms, suggesting that job ladder models offer a useful lens through which to understand the negative consequences of job separations.

Suggested Citation

  • Bruce Fallick & John C. Haltiwanger & Erika McEntarfer & Matthew Staiger, 2021. "Job Displacement and Job Mobility: The Role of Joblessness," NBER Working Papers 29187, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29187
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    References listed on IDEAS

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    1. 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.
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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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