Losing Work, Moving away? Regional Mobility after Job Loss

Daniel Fackler and Lisa Rippe

No 861, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: Using German survey data, we investigate the relationship between involuntary job loss and regional mobility. Our results show that job loss has a strong positive effect on the propensity to relocate. We also analyze whether the high and persistent earnings losses of displaced workers can in part be explained by limited regional mobility. Applying an event study approach, which controls for worker fixed effects, our findings do not support this conjecture as we find substantial long lasting earnings losses for both movers and stayers. In the short run, movers even face slightly higher losses, but the differences between the two groups of displaced workers are never statistically significant. This challenges whether migration is a beneficial strategy in case of involuntary job loss.

Keywords: job displacement; plant closure; regional mobility; earnings; SOEP (search for similar items in EconPapers)
JEL-codes: J61 J63 (search for similar items in EconPapers)
Pages: 30 p.
Date: 2016
New Economics Papers: this item is included in nep-mig
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp861

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