Sources of Displaced Workers' Long-Term Earnings Losses / Marta Lachowska, Alexandre Mas, Stephen A. Woodbury.

Format:

Book

Author/Creator:

Lachowska, Marta.

Contributor:

National Bureau of Economic Research.

Mas, Alexandre.

Woodbury, Stephen A.

Series:

Working Paper Series (National Bureau of Economic Research) no. w24217.

NBER working paper series no. w24217

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

We estimate the magnitudes of reduced earnings, work hours, and wage rates of workers displaced during the Great Recession using linked employer-employee panel data from Washington State. Displaced workers' earnings losses occurred mainly because hourly wage rates dropped at the time of displacement and recovered sluggishly. Lost employer-specific premiums explain only 17 percent of these losses. Fully 70 percent of displaced workers moved to employers paying the same or higher wage premiums than the displacing employers, but these workers nevertheless suffered substantial wage rate losses. Loss of valuable specific worker-employer matches explain more than half of the wage losses.

Notes:

Print version record

January 2018.