Job Displacement and Job Mobility: The Role of Joblessness
Working Paper 29187
DOI 10.3386/w29187
Issue Date
Who is harmed by and who benefits from worker reallocation? We investigate the earnings consequences of changing jobs and find a wide dispersion in outcomes. This dispersion is driven not by whether the worker was displaced, but by the duration of joblessness between job spells. Job movers who experience joblessness suffer a persistent reduction in earnings and tend to move to lower-paying firms, suggesting that job ladder models offer a useful lens through which to understand the negative consequences of job separations.
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Copy CitationBruce Fallick, John C. Haltiwanger, Erika McEntarfer, and Matthew Staiger, "Job Displacement and Job Mobility: The Role of Joblessness," NBER Working Paper 29187 (2021), https://doi.org/10.3386/w29187.