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Job-to-Job Flows and the Consequences of Job Separations

Bruce Fallick (), John Haltiwanger and Erika McEntarfer ()

No 201927, Working Papers from Federal Reserve Bank of Cleveland

Abstract: A substantial empirical literature documents large and persistent average earnings losses following job displacement. Our paper extends the literature on displaced workers by providing a comprehensive picture of earnings and employment outcomes for all workers who separate. We show that for workers not recalled to their previous employer, earnings losses follow separations in general, as opposed to displacements in particular. The key predictor of earnings losses is not displacement but the length of the nonemployment spell following job separation. Moreover, displaced workers are no more likely to experience a substantial spell of nonemployment than are other non-recalled separators. Our results suggest that future research on the consequences of job loss should work to disentangle the strong association between nonemployment and earnings losses, as opposed to focusing specifically on displaced workers.

JEL-codes: J63 J64 (search for similar items in EconPapers)
Date: 2019-12-13
New Economics Papers: this item is included in nep-lab, nep-ore and nep-ure
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https://doi.org/10.26509/frbc-wp-201927

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Working Paper: Job-to-job flows and the consequences of job separations (2012) Downloads
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DOI: 10.26509/frbc-wp-201927

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