NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Reconsidering the Consequences of Worker Displacements: Firm versus Worker Perspective

Aaron B. Flaaen, Matthew D. Shapiro, Isaac Sorkin

NBER Working Paper No. 24077
Issued in November 2017, Revised in April 2018
NBER Program(s):Economic Fluctuations and Growth Program, Labor Studies Program, The Monetary Economics Program

Prior literature has established that displaced workers suffer persistent earnings losses by following workers in administrative data after mass layoffs. This literature assumes that these are involuntary separations owing to economic distress. This paper examines this assumption 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 rea- son 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.

download in pdf format
   (610 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w24077

Published: Aaron Flaaen & Matthew D. Shapiro & Isaac Sorkin, 2019. "Reconsidering the Consequences of Worker Displacements: Firm versus Worker Perspective," American Economic Journal: Macroeconomics, vol 11(2), pages 193-227. citation courtesy of

Users who downloaded this paper also downloaded* these:
Borovičková and Shimer w24074 High Wage Workers Work for High Wage Firms
Wolff w24085 Household Wealth Trends in the United States, 1962 to 2016: Has Middle Class Wealth Recovered?
Stinebrickner, Stinebrickner, and Sullivan w24079 Job Tasks, Time Allocation, and Wages
Bai, Carvalho, and Phillips w24081 The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity
Blanchflower and Oswald w24087 Unhappiness and Pain in Modern America: A Review Essay, and Further Evidence, on Carol Graham’s Happiness for All?
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us