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Layoffs and Wage Growth of Male Household Heads

Emily Blank

Eastern Economic Journal, 1988, vol. 14, issue 3, 239-250

Abstract: This paper compares the impact of layoffs on wage growth for men of different demographic groups. This impact is assumed to depend, in part, on the firm-specific, on-the-job training lost through the layoff, which is hypothesized to be a function of the individual's demographic characteristics. Log wage growth regressions are run, disaggregating by age, education and race, and using interactions of tenure with layoffs as one of the independent variables. Results suggest that layoffs decrease wage growth if they occurred within the last six years or after at least four years of tenure, particularly for whites.

Date: 1988
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Eastern Economic Journal is currently edited by Cynthia A. Bansak, St. Lawrence University and Allan A. Zebedee, Clarkson University

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