Understanding the Reallocation of Displaced Workers to Firms

Paul Brandily (), Camille Hemet and Clément Malgouyres
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Paul Brandily: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: We study job displacement in France. In the medium run, losses in firm-specific wage premium account for a substantial share of tthe overall cost of displacement. However, and despite the positive correlation between premium and productivity in the cross-section of firms, we find that workers are reemployed by high productivity, low labor share firms. The observed reallocation is therefore productivity-enhancing, yet costly for workers. We show that destination firms are less likely to conclude collective wage agreements and have lower participation rates at professional elections. Overall, our results point to a loss in bargaining power.

Keywords: Displaced workers; Wage; Reallocation; Labor share; Productivity; Labor share Displaced workers (search for similar items in EconPapers)
Date: 2022-02
New Economics Papers: this item is included in nep-eur
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03082302v2
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Related works:
Working Paper: Understanding the Reallocation of Displaced Workers to Firms (2022)
Working Paper: Understanding the Reallocation of Displaced Workers to Firms (2022)
Working Paper: Understanding the Reallocation of Displaced Workers to Firms (2022)
Working Paper: Understanding the Reallocation of Displaced Workers to Firms (2022)
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