The Longer‐term Impacts of Job Displacement on Labour Market Outcomes in New Zealand

Dean Hyslop and Wilbur Townsend

Australian Economic Review, 2019, vol. 52, issue 2, 158-177

Abstract: This article analyses the longer‐term impacts of job displacements in New Zealand using linked survey and administrative data. The job loss rate is low but has substantial and long‐lasting impacts. Displaced workers have 20−25 per cent lower employment rates than non‐displaced workers in the year following displacement, and still 8−12 per cent lower after five years. Furthermore, their conditional earnings and incomes were about 25 per cent lower in the first year and 15 per cent lower after five years. The impacts were concentrated among older workers, larger for those displaced during the great recession, and only modestly ameliorated by government income support.

Date: 2019
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