NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Isaac Sorkin

Department of Economics
Stanford University
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NBER Program Affiliations: LS
NBER Affiliation: Faculty Research Fellow

NBER Working Papers and Publications

November 2017Reconsidering the Consequences of Worker Displacements: Firm versus Worker Perspective
with Aaron B. Flaaen, Matthew D. Shapiro: w24077
Displaced workers suffer persistent earnings losses. This stark finding has been established by following workers in administrative data after mass layoffs under the presumption that these are involuntary separations owing to economic distress. This paper examines this presumption by matching survey data on worker-supplied reasons for separations with administrative data. Workers exhibit substantially different earnings dynamics in mass layoffs depending on the reason for separation. Using a new methodology to account for the increased separation rates across all survey responses during a mass layoff, the paper finds earnings loss estimates that are surprisingly close to those using only administrative data.
October 2017Ranking Firms Using Revealed Preference
w23938
This paper estimates workers' preferences for firms by studying the structure of employer-to-employer transitions in U.S. administrative data. The paper uses a tool from numerical linear algebra to measure the central tendency of worker flows, which is closely related to the ranking of firms revealed by workers' choices. There is evidence for compensating differential when workers systematically move to lower-paying firms in a way that cannot be accounted for by layoffs or differences in recruiting intensity. The estimates suggest that compensating differentials account for over half of the firm component of the variance of earnings.
 
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