Beyond Lost Earnings: The Long-Term Impact of Job Displacement on Workers’ Commuting Behavior

Yige Duan, Oskar Jost and Ramona Jost
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Oskar Jost: Institute for Employment Research (IAB), Nuremberg, Germany
Ramona Jost: Institute for Employment Research (IAB), Nuremberg, Germany

No 202215, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "We study the long-term impact of job displacement on workers’ commuting behavior. Our measures of commuting exploit geo-coordinates of workers’ places of residence and places of work, from which we calculate the door-to-door commuting distance and commuting time. Using German employee-employer matched data and an event study design, we identify the causal effect of job loss on workers displaced during a mass layoff. Conditional on finding a new job, workers’ commuting distance and commuting time rise sharply after displacement and gradually decline in subsequent years. The recovery is due to employer changes rather than migration, and a larger increase in commuting would mitigate the wage loss due to job displacement. To rationalize our findings, we build an on-the-job search model with heterogeneous firm productivity and commuting distances. Our model predicts a joint recovery of wages and commuting despite a static tradeoff between the two attributes." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; IAB-Open-Access-Publikation; Auswirkungen; Einkommenseffekte; Erwerbsverhalten; IAB-Betriebs-Historik-Panel; Integrierte Erwerbsbiografien; Pendelwanderung; Pendler; regionale Faktoren; regionale Mobilität; Arbeitsort; Wohnort; Arbeitsplatzverlust; Arbeitsuche; 2000-2017 (search for similar items in EconPapers)
JEL-codes: J30 J60 R23 R40 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2022-06-15
New Economics Papers: this item is included in nep-dem, nep-geo, nep-lab and nep-ure
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Citations: View citations in EconPapers (2)

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https://doi.org/10.48720/IAB.DP.2215

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202215

DOI: 10.48720/IAB.DP.2215

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