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Long Term Effects of Job Displacement. Paper presented at the 2010 American Sociological Association Annual Meeting

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  • Moehr, Matthew J

    (University of Wisconsin-Madison)

Abstract

This paper replicates and extends Stevens’s (1997) analysis of the long-term effects of job displacements. Using data from the 1968-2005 waves of the Panel Study of Income Dynamics, I estimate fixed-effects models which show that there are long term decreases in earnings after displacements. The decreases are mediated when longer follow up data is used for individuals. Changes in the labor market have also shifted the relationship between displacements and individual worker characteristics. Specifically, education and experience have become more important then displacements. Conclusions are based on an analysis of the different people in the 40 years of PSID data and the structural changes in the labor market over that time. This article suggests that longitudinal data and fixed-effects models are one of many ways to conceptualize labor market changes.

Suggested Citation

  • Moehr, Matthew J, 2017. "Long Term Effects of Job Displacement. Paper presented at the 2010 American Sociological Association Annual Meeting," OSF Preprints 2c5te_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:2c5te_v1
    DOI: 10.31219/osf.io/2c5te_v1
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    References listed on IDEAS

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    1. Francine D. Blau & Lawrence M. Kahn, 2007. "Changes in the Labor Supply Behavior of Married Women: 1980–2000," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 393-438.
    2. 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.
    3. Sara Mclanahan, 2004. "Diverging destinies: How children are faring under the second demographic transition," Demography, Springer;Population Association of America (PAA), vol. 41(4), pages 607-627, November.
    4. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    5. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-538, May.
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