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What Happens to Wages After Displacement?

David Kaplan (), Gabriel Martinez () and Raymond Robertson

MPRA Paper from University Library of Munich, Germany

Abstract: Faced with limited resources, policymakers need to know when and where to target support for displaced workers. The academic literature offers little support, presenting wide-ranging results with no consistent explanation for the observed differences in wages after workers are displaced. In this paper, we demonstrate that the heterogeneity found in the literature is consistent with varying market conditions. The results suggest that support for displaced workers can be more efficiently allocated by considering the timing and location of displacement.

Keywords: Displaced Workers; Mexico (search for similar items in EconPapers)
JEL-codes: J21 E24 (search for similar items in EconPapers)
Date: 2005
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Published in Journal of the Latin American and Caribbean Economic Association 2.5(2005): pp. 197-234

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