scholarly journals When a Door Closes, a Window Opens? Long-Term Labor Market Effects of Involuntary Separations

2017 ◽  
Vol 18 (1) ◽  
pp. 1-21 ◽  
Author(s):  
Simone Balestra ◽  
Uschi Backes-Gellner

Abstract This study estimates the earning losses of workers experiencing an involuntary job separation. We employ, for the first time in the earning losses literature, a Poisson pseudo-maximum-likelihood estimator with fixed effects that has several advantages with respect to conventional fixed effects models. The Poisson estimator allows considering the full set of involuntary separations, including those with zero labor market earnings because of unemployment. By including individuals with zero earnings and by using our new method, the loss in the year of separation becomes larger than in previous studies. The loss starts with roughly 30% and, although it quickly shrinks, it remains at around 15% in the following years. In addition, we find that compared to other reasons for separation, the earning loss pattern is unique for involuntary separations, because no other type of separation implies such permanent scarring. This latter finding makes us confident that the self-reported involuntariness of a separation is a reliable source of information.

Author(s):  
Anne Grönlund ◽  
Madelene Nordlund

Using longitudinal register data, we examined gender patterns in the long-term labor market establishment of refugees (n ≈ 11,700) and Swedish-born individuals (n ≈ 109,000). The main question was whether refugee women face greater difficulties than men and if gender differences can be attributed to care responsibilities. With multinomial logistic regression, cox regressions, and individual fixed effects models, refugees were observed at age 29–30 in 1997, then followed to age 50. Results show that both among refugees and Swedish-born, establishment was a protracted and insecure process for women. Over time, women caught up with men but in terms of stable employment, gender gaps prevailed throughout the fertile period and parenthood was negatively related to long-term establishment prospects. Future research should move beyond the focus on labor market entry to capture the mechanisms behind long term insecurities. The timing of parenthood and the importance of adult education are of particular interest.


Author(s):  
Sauro Mocetti

Abstract This paper contributes to the growing number of studies on intergenerational mobility by providing a measure of earnings elasticity for Italy. The absence of an appropriate data set is overcome by adopting the two-sample two-stage least squares method. The analysis, based on the Survey of Household Income and Wealth, shows that intergenerational mobility is lower in Italy than it is in other developed countries. We also examine the reasons why the long-term labor market success of children is related to that of their fathers.


ILR Review ◽  
1992 ◽  
Vol 45 (3) ◽  
pp. 435-448 ◽  
Author(s):  
Charles A. Register ◽  
Donald R. Williams

Using data on marijuana and cocaine use from the 1984 National Longitudinal Survey of Youth, the authors examine the hypothesis that drug use reduces labor market productivity, as measured by wages. From an analysis that controls for the probability of employment and the endogeneity of drug use, they find that although long-term and on-the-job use of marijuana negatively affected wages, the net productivity effect for all marijuana users (both those who engaged in long-term or on-the-job use and those who did not) was positive. No statistically significant association was found between cocaine use and productivity.


2020 ◽  
Author(s):  
Marco Stampini ◽  
María Laura Oliveri ◽  
Pablo Ibarrarán ◽  
Diana Londoño ◽  
Ho June (Sean) Rhee ◽  
...  

2017 ◽  
Author(s):  
Matthew J Moehr

This paper replicates and extends Stevens’s (1997) analysis of the long-term effects of job displacements. Using data from the 1968-2005 waves of the Panel Study of Income Dynamics, I estimate fixed-effects models which show that there are long term decreases in earnings after displacements. The decreases are mediated when longer follow up data is used for individuals. Changes in the labor market have also shifted the relationship between displacements and individual worker characteristics. Specifically, education and experience have become more important then displacements. Conclusions are based on an analysis of the different people in the 40 years of PSID data and the structural changes in the labor market over that time. This article suggests that longitudinal data and fixed-effects models are one of many ways to conceptualize labor market changes.


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