The Firm's Role in Displaced Workers' Earnings Losses
Bibliographic Data
| ID | 3280927 |
|---|---|
| Authors | B Moore (0000-0002-7560-5253, corresponding author), Judith Scott-Clayton (0009-0005-2001-149X, Brendan Moore is a PhD student in the Department of Economics at Stanford University. Judith Scott-Clayton is Professor of Economics and Education at Teachers College, Columbia University) |
| Year | 2025 |
| Volume | 78 |
| Issue | 3 |
| Pages | 517-542 |
| Publication date | 2025-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Industrial and Labor Relations Review (JOURNAL) |
| Journal identifiers | ISSN: 0019-7939 • E-ISSN: 2162-271X |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/00197939241310124 |
| OpenAlex | W3160512669 |
| Language | EN |
| References cited | 35 |
The authors investigate the role of firm pay premiums in explaining the large, persistent earnings losses of displaced workers. They first estimate that long-run earnings for displaced workers from 2002 to 2008 in Ohio are depressed by 22%. Drawing upon empirical approaches from the displaced worker and firm heterogeneity literature, the authors then estimate that one-quarter of this earnings loss can be explained by the forfeiture of a favorable employer-specific pay premium. Such firm rents are more salient for those laid off from manufacturing firms, explaining half of their lost earnings. Nevertheless, this study adds to early evidence that firm rents do not explain the majority of earnings losses sustained by displaced workers in the United States
Business · Demographic economics · Displaced workers · Earnings · Economics · Labour economics · Accounting · Indian Economic and Social Development · Labor market dynamics and wage inequality · Unemployment and Economic Growth
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| Citation velocity | historical |
|---|---|
| Highly cited | No |