TY - JOUR
T1 - Sources of displaced workers' long- term earnings losses
AU - Lachowska, Marta
AU - Mas, Alexandre
AU - Woodbury, Stephen A.
N1 - Publisher Copyright:
© 2020 American Economic Association. All rights reserved.
PY - 2020/10
Y1 - 2020/10
N2 - We estimate the magnitudes of reduced earnings, work hours, and wage rates of workers displaced during the Great Recession using linked employer- employee panel data from Washington state. Displaced workers' earnings losses occurred mainly because hourly wage rates dropped at the time of displacement and recovered sluggishly. Lost employer- specific premiums explain only 17 percent of these losses. Fully 70 percent of displaced workers moved to employers paying the same or higher wage premiums than the displacing employers, but these workers nevertheless suffered substantial wage rate losses. Loss of valuable specific worker- employer matches explains more than one-half of the wage losses.
AB - We estimate the magnitudes of reduced earnings, work hours, and wage rates of workers displaced during the Great Recession using linked employer- employee panel data from Washington state. Displaced workers' earnings losses occurred mainly because hourly wage rates dropped at the time of displacement and recovered sluggishly. Lost employer- specific premiums explain only 17 percent of these losses. Fully 70 percent of displaced workers moved to employers paying the same or higher wage premiums than the displacing employers, but these workers nevertheless suffered substantial wage rate losses. Loss of valuable specific worker- employer matches explains more than one-half of the wage losses.
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U2 - 10.1257/aer.20180652
DO - 10.1257/aer.20180652
M3 - Article
AN - SCOPUS:85092547682
SN - 0002-8282
VL - 110
SP - 3231
EP - 3236
JO - American Economic Review
JF - American Economic Review
IS - 10
ER -