Job displacement and local employment density

David Maré, Richard Fabling and Dean Hyslop

No 23_12, Working Papers from Motu Economic and Public Policy Research

Abstract: Past research finds evidence that workers’ labour market outcomes are enhanced if they live in areas with greater job opportunities and employment density. Using two alternative measures of the employment density and job opportunities faced by workers in the local labour market in which they were displaced, this paper analyses their effects on the subsequent migration decisions and labour market outcomes of workers who involuntarily lose their jobs as part of a firm closure or mass layoff event. Our analysis finds only limited support for the spatial mismatch hypothesis. The results imply that workers displaced from jobs in areas with greater employment density or job opportunities are more likely to emigrate, are less likely to be re-employed following layoff and have lower subsequent earnings, although earnings are higher conditional on being employed. However, if employed, workers displaced in areas with more opportunities are less likely to have moved area, but more likely to have changed industry, and have a more similar job to that from which they were displaced.

Keywords: Displaced workers; unemployment duration; local labour markets (search for similar items in EconPapers)
JEL-codes: J62 J64 R23 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2023-12
New Economics Papers: this item is included in nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://motu-www.motu.org.nz/wpapers/23_12.pdf

Related works:
Working Paper: Job Displacement and Local Employment Density (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mtu:wpaper:23_12

Access Statistics for this paper

More papers in Working Papers from Motu Economic and Public Policy Research Contact information at EDIRC.
Bibliographic data for series maintained by Maxine Watene ().