The Impact of Displacement on the Earnings of Workers in Ireland

Nóirín McCarthy and Peter Wright
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Nóirín McCarthy: University College Cork

The Economic and Social Review, 2018, vol. 49, issue 4, 373-417

Abstract: In this paper we estimate the earnings losses of displaced workers. We use a novel matched worker-firm dataset to estimate earnings losses associated with mass-layoff and closure events in Ireland. Using propensity score matching and difference-in-differences estimators, we find that in the year following displacement, workers who experience a mass-layoff incur losses of 77 per cent compared to losses of 46 per cent for those displaced following a closure, relative to earnings five periods prior to displacement. However, those who are re-employed immediately after displacement suffer much smaller losses of 36 per cent and 19 per cent in the mass-layoff and closure groups respectively. Those displaced in the 2008-2010 group suffer greater earnings losses than those displaced between 2005 and 2007.

Keywords: earnings; workers; Ireland (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:eso:journl:v:49:y:2018:i:4:p:373-417

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