Arbeitspapier

Earnings losses of displaced workers: evidence from a matched employer-employee data set

This paper examines the long-term earnings losses of displaced workers in Portugal, using a nationally representative longitudinal linked employer-employee data set. The results show that four years after displacement the earnings of displaced workers remain around 9% (women) to 12% (men) below their counterfactual expected levels. The post-displacement earnings losses are mainly associated with the loss of tenure within the firm and, to a lesser extent, to the loss of sector-specific features. Furthermore, workers who experienced a spell of nonemployment are the most affected by job displacement. Finally, this study points to the importance of controlling for employers' characteristics in this type of wages-dynamic analysis, since there are systematic differences in earnings between displaced and non-displaced workers that stem from differences in firm characteristics. Ignoring them may confound the evaluation of the earnings losses.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 2289

Classification
Wirtschaft
Subject
Arbeitslosigkeit
Lohnstruktur
Portugal

Event
Geistige Schöpfung
(who)
Carneiro, Anabela
Portugal, Pedro
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2006

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Carneiro, Anabela
  • Portugal, Pedro
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2006

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