Displaced workers, early leavers, and re-employment wages
November 2002
Working Paper Number:
tp-2002-18
Abstract
In this paper, we lay out a search model that takes explicitly into account the
information flow prior to a mass layoff. Using universal wage data files that allow
us to identify individuals working with healthy and displacing firms both at
the time of displacement as well as any other time period, we test the predictions
of the model on re-employment wage differentials. Workers leaving a "distressed"
firm have higher re-employment wages than workers who stay with the
distressed firm until displacement. This result is robust to the inclusion of controls
for worker quality and unobservable firm characteristics.
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provides connections that go beyond potentially domain-specific author-defined keywords.
:
endogeneity,
employed,
labor,
workforce,
worker,
disadvantaged,
population,
household,
wage changes,
layoff,
employer household,
unemployed
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including "organizations." By filtering for frequent words and phrases labeled as "organizations", papers are
identified to contain references to specific institutions, datasets, and other organizations.
:
National Science Foundation,
Ordinary Least Squares,
National Longitudinal Survey of Youth,
Current Population Survey,
Cornell University,
Longitudinal Employer Household Dynamics,
Alfred P Sloan Foundation,
National Institute on Aging,
Cornell Institute for Social and Economic Research,
LEHD Program,
Employer-Household Dynamics
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