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Displaced Workers in Mass Layoffs: Pre-Displacement Earnings Losses and the Unions Effect

Author

Listed:
  • Sara De La Rica

    (University of the Basque Country and Princeton University)

Abstract

In the first part of the paper, I compare the pre-displacement earnings of workers displaced from distressed firms to the wages of non-displaced workers. The results suggest that displaced workers suffer losses that amount to ll% of their earnings before the actual separation occurs. The second part of the paper concerns union effects on wages in situations of long-run declining demand. The findings suggest that for females unions "harvest" the quasi-rents of declining firms by rising the union-nonunion wage gap.

Suggested Citation

  • Sara De La Rica, 1992. "Displaced Workers in Mass Layoffs: Pre-Displacement Earnings Losses and the Unions Effect," Working Papers 303, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:303
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    Citations

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    Cited by:

    1. Henry S. Farber, 2001. "Job Loss in the United States, 1981-1999," Working Papers 832, Princeton University, Department of Economics, Industrial Relations Section..
    2. Henry S. Farber, 2016. "Employment, Hours and Earnings Consequences of Job Loss: U.S. Evidence from the Displaced Workers Survey," Working Papers 589a, Princeton University, Department of Economics, Industrial Relations Section..
    3. Henry S. Farber, 1993. "The Incidence and Costs of Job Loss: 1982-91," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1 Microec), pages 73-132.
    4. Henry S. Farber, 2001. "Job Loss in the United States, 1981-1999," Working Papers 832, Princeton University, Department of Economics, Industrial Relations Section..
    5. Henry S. Farber, 2015. "Job Loss in the Great Recession and its Aftermath: U.S. Evidence from the Displaced Workers Survey," Working Papers 589, Princeton University, Department of Economics, Industrial Relations Section..
    6. Farber, Henry S, 2015. "Job Loss in the Great Recession and its Aftermath: U.S. Evidence from the Displaced Workers Survey," IZA Discussion Papers 9069, Institute of Labor Economics (IZA).
    7. Henry S. Farber, 2015. "Job Loss in the Great Recession and its Aftermath: U.S. Evidence from the Displaced Workers Survey," NBER Working Papers 21216, National Bureau of Economic Research, Inc.
    8. Hoek, Jasper, 2006. "Life Cycle Effects of Job Displacement in Brazil," IZA Discussion Papers 2291, Institute of Labor Economics (IZA).

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