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Post-Layoff Earnings among Semiconductor Workers

Paul M. Ong and Don Mar

ILR Review, 1992, vol. 45, issue 2, 366-379

Abstract: This study uses administrative data from California's unemployment insurance program to analyze the post-layoff earnings of displaced and recalled workers in Silicon Valley's semiconductor industry between 1984 and 1987. The authors find losses from inter-sectoral displacement that are consistent with losses found in other studies of job dislocation. The results show, however, that displaced workers who found work within the high-technology sector had earnings similar to those of recalled workers, a finding at odds with theories that emphasize either firm-specific human capital or internal labor markets. These results are instead consistent with the presence of both industry-specific human capital and efficiency wages in the high-technology sector.

Date: 1992
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