Job loss and earnings inequality: Distributional effects of formal re-employment in Chile

Rafael Carranza, Joaquín Prieto and Kirsten Sehnbruch

Economic Analysis and Policy, 2025, vol. 86, issue C, 1020-1036

Abstract: This paper examines the impact of job losses on the subsequent earnings of formal workers in Chile using administrative data. It contributes to the literature by examining the impact of job losses across the earnings distribution using unconditional quantile regression analysis. The paper thus provides evidence on the costs of losing a formal job in an emerging economy that is now considered 'high-income' but still suffers from high earnings inequality and other issues that characterise labour markets in developing countries, such as high job rotation.

Keywords: Earnings inequality; Unemployment; Formal employment; Chile; Distributive analysis of job losses; Wage losses (search for similar items in EconPapers)
JEL-codes: C21 D63 E24 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:1020-1036

DOI: 10.1016/j.eap.2025.02.021

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