Konferenzbeitrag

Explaining Wage Losses after Job Displacement: Employer Size and Lost Firm Rents

Why does job displacement, e.g., following import competition, technological change, or economic downturns, result in permanent wage losses? The job displacement literature is silent on whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity depreciations. We therefore estimate losses in wages and firm wage premiums. Premiums are measured as firm effects from a two-way fixed-effects approach, as described in Abowd, Kramarz, and Margolis (1999). Using German administrative data, we find that wage losses are, on average, fully explained by losses in firm wage premiums and that premium losses are largely permanent. We show that losses in wages and premiums are minor for workers displaced from small plants and strongly increase with pre-displacement firm size, which provides an explanation for the large and persistent wage losses that have been found in previous studies mostly focusing on displacement from large employers.

Sprache
Englisch

Erschienen in
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Labor and Unemployment I ; No. A16-V2

Klassifikation
Wirtschaft
Wage Level and Structure; Wage Differentials
Labor Turnover; Vacancies; Layoffs
Unemployment Insurance; Severance Pay; Plant Closings
Thema
job displacement
wages
firm size
firm rents

Ereignis
Geistige Schöpfung
(wer)
Fackler, Daniel
Mueller, Steffen
Stegmaier, Jens
Ereignis
Veröffentlichung
(wer)
ZBW - Leibniz-Informationszentrum Wirtschaft
(wo)
Kiel, Hamburg
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Konferenzbeitrag

Beteiligte

  • Fackler, Daniel
  • Mueller, Steffen
  • Stegmaier, Jens
  • ZBW - Leibniz-Informationszentrum Wirtschaft

Entstanden

  • 2018

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