Labour market effects of job displacement for prime-age and older workers

Anja Deelen (), Marloes De Graaf-Zijl and Wiljan van den Berge
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Anja Deelen: CPB Netherlands Bureau for Economic Policy Analysis

IZA Journal of Labor Economics, 2018, vol. 7, issue 1, 1-30

Abstract: Abstract This paper studies the effects of firm closures associated with bankruptcies on the employment status and wages of prime-age and older workers using Dutch administrative data for the period 2000–2011. Applying difference-in-differences techniques and non-parametric matching, we find adverse effects on the probability to be in work and on wages earned in the new job, which are larger for older workers than for prime-age workers. Within the older-age group, the effects are stronger for formerly long-tenured workers, for older workers who lost their job in declining sectors in the regional labour market and for workers who changed sectors. In the prime-age group, these differences are less pronounced. Our results suggest that job- and sector-specific factors are important for understanding the more vulnerable position of older workers after job loss.

Keywords: Firm closures; Older workers; Unemployment (search for similar items in EconPapers)
JEL-codes: J14 J63 J65 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (30)

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Working Paper: Labour market effects of job displacement for prime-age and older workers (2014)
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DOI: 10.1186/s40172-018-0063-x

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