“Interindustry Variation in the Costs of Job Displacement,” (with William J. Carrington), Journal of Labor Economics Vol. 12, number 2, pages 243-275, April 1994.
ABSTRACT
Job displacement entails a substantial wage reduction for most displaced workers. We show that the mean reduction, the tenure profile of reductions, and the experience profile of reductions all vary substantially across industries. We then link this interindustry variation to analogous variation in firm size, unionization, wage levels, and the incidence of employer-provided training. While these industry characteristics explain some of the interindustry variation in mean wage reductions, they do not explain variation in the tenure or experience profiles of wage reductions.
REFERENCES
Addison, John T., and Portugal, Pedro. "The Effects of Advance Notification of Plant Closings on Unemployment." Industrial and Labor Relations Review 41 (October 1987): 3-15.
Akerlof, George, and Yellen, Janet. "Unemployment through the Filter of Memory." Quarterly Journal of Economics 100 (August 1985): 737-53. Becker, Gary. Human Capital. New York: National Bureau of Economic Research, 1962.
Blattberg, Robert, and George, Edward. "Shrinkage Estimation of Price and Promotional Elasticities: Seemingly Unrelated Equations." Journal of the American Statistical Society 86 (June 1991): 304-15.
Brown, Charles, and Medoff, James. "The Employer Size-Wage Effect." Journal of Political Economy 97 (October 1989): 1027-59.
Carrington, William J. "Wage Losses for Displaced Workers: Is It Really the Firm That Matters?" Journal of Human Resources 28 (Summer 1993): 435-62.
Farber, Henry S. "The Incidence and Costs of Job Loss: 1982-91." Brookings Papers on Economic Activity, no. 1 ( 1 993), pp. 73-132.
Fay, Robert E., and Herriot, Roger A. "Estimates of Income for Smal] Places: An Application of James-Stein Procedures to Census Data.' Journal of the American Statistical Society 74 (June 1979): 269-77.
Howland, Marie, and Peterson, George. "Labor Market Conditions and the Reemployment of Displaced Workers." Industrial and Labor Relation Review 42 (October 1988): 109-22.
Jacobson, Louis; LaLonde, Robert; and Sullivan, Daniel G. "Earnings Losses of Displaced Workers." American Economic Review 83 (September 1993) 685-709.
Juhn, Chinhui; Murphy, Kevin M.; and Pierce, Brooks. "Wage Inequality and the Rise in Returns to Skill." Journal of Political Economy 101 (June 1993): 410-42.
Kletzer, Lori G. "Returns to Seniority after Permanent Job Loss." Americar Economic Review 79 (June 1989): 536-43. . "Earnings after Job Displacement: Job Tenure, Occupation, Industry." In Job Displacement: Consequences and Implications for Policy, edited by John T. Addison. Detroit: Wayne State University Press, 1991.
Kokkelenberg, Edward C., and Sockell, Donna R. "Union Membership in the United States: 1973-198 1." Industrial and Labor Relations Review 38 (July 1985): 497-543.
Krueger, Alan B., and Summers, Lawrence H. "Efficiency Wages and the Interindustry Wage Structure." Econometrica 56 (March 1988): 259-93 Mills, Daniel Quinn. Labor-Management Relations, 4th ed. New York: McGraw-Hill, 1989.
Morris, Carl N. "Parametric Empirical Bayes Inference: Theory and Applications." Journal of the American Statistical Association 78 (January 1983): 47-54.
Podgursky, Michael, and Swaim, Paul. "Job Displacement and Earnings Loss: Evidence from the Displaced Worker Survey." Industrial and Laboi Relations Review 40 (October 1987): 17-29.
Ruhm, Christopher. "The Time Profile of Displacement-induced Changes in Unemployment and Earnings." In Job Displacement: Consequencej and Implications for Policy, edited by John T. Addison. Detroit: Wayne State University Press, 1991.
Topel, Robert. "Specific Capital and Unemployment: Measuring the Costs and Consequences of Job Loss." Carnegie-Rochester Conference Series or Public Policy 33 (1990): 181-214.
U.S. Department of Commerce, Bureau of the Census. StatisticalAbstraci of the United States. Washington, D.C.: Government Printing Office. 1987. (a)
U.S. Department of Commerce, Bureau of the Census. Enterprise Statistics, Washington, D.C.: Government Printing Office, 1987. (b)
Zellner, Arnold, and Hong, Chansik. "Forecasting International Growtlh Rates Using Bayesian Shrinkage and Other Procedures." Journal oc Econometrics 40 (January 1989): 183-202.