Interindustry Variation in the Costs of Job Displacement

William J Carrington and Asad Zaman

Journal of Labor Economics, 1994, vol. 12, issue 2, 243-75

Abstract: Job displacement entails a substantial wage reduction for most displaced workers. The authors show that the mean reduction, the tenure profile of reductions, and the experience profile of reductions all vary substantially across industries. They then link this interindustry variation to analogous variation in firm size, unionization, wage levels, and the incidence of employer-provided training. While these industry characteristics explain some of the interindustry variation in mean wage reductions, they do not explain variation in the tenure or experience profiles of wage reductions. Copyright 1994 by University of Chicago Press.

Date: 1994
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