The heterogeneous earnings impact of job lossacross workers, establishments, and markets

Susan Athey, Lisa Simon, Oskar Skans (), Johan Johan Vikström () and Yaroslav Yakymovych
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Oskar Skans: Dep. of Economics, Uppsala University
Johan Johan Vikström: IFAU; Dep. of Economics, Uppsala University
Yaroslav Yakymovych: Institute for Housing and Urban Research, Uppsala University

No 2024:10, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: Using generalized random forests and rich Swedish administrative data, we show that the earnings effects of job displacement due to establishment closures are highly heterogeneous. We find as much heterogeneity within as across closing establishments, and within as across worker types defined by age and schooling. We display the potential of market-based policy interventions by showing that much of the heterogeneity across establishments is shared within markets. Several results suggest that the effect heterogeneity disfavors already vulnerable workers. Thus, targeted policy interventions may be justified to a larger extent than suggested by estimated average earnings effects.

Keywords: Plant closures; heterogeneous effects; GRF (search for similar items in EconPapers)
JEL-codes: C45 J21 J31 J65 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2024-05-15
New Economics Papers: this item is included in nep-inv and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The Heterogeneous Earnings Impact of Job Loss Across Workers, Establishments, and Markets (2024)
Working Paper: The Heterogeneous Earnings Impact of Job Loss across Workers, Establishments, and Markets (2023)
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