Understanding the Reallocation of Displaced Workers to Firms

Paul Brandily (), Camille Hémet () and Clément Malgouyres
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Paul Brandily: Paris School of Economics
Camille Hémet: Paris School of Economics

No 15105, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study job displacement in France. In the medium run, losses in firm-specific wage premium account for a substantial share of the overall cost of displacement. However, and despite the positive correlation between premium and productivity in the cross-section of firms, we find that workers are reemployed by high productivity, low labor share firms. The observed reallocation is therefore productivity-enhancing, yet costly for workers. We show that destination firms are less likely to conclude collective wage agreements and have lower participation rates at professional elections. Overall, our results point to a loss in bargaining power.

Keywords: displaced workers; wage; reallocation; productivity; labor share (search for similar items in EconPapers)
JEL-codes: J31 J63 (search for similar items in EconPapers)
Pages: 70 pages
Date: 2022-02
New Economics Papers: this item is included in nep-bec, nep-eff, nep-eur, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Understanding the Reallocation of Displaced Workers to Firms (2022)
Working Paper: Understanding the Reallocation of Displaced Workers to Firms (2022)
Working Paper: Understanding the Reallocation of Displaced Workers to Firms (2022)
Working Paper: Understanding the Reallocation of Displaced Workers to Firms (2022)
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