Displaced Workers in Mass Layoffs: Pre-Displacement Earnings Losses and the Unions Effect

Sara De La Rica
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Sara De La Rica: University of the Basque Country and Princeton University

Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

Abstract: In the first part of the paper, I compare the pre-displacement earnings of workers displaced from distressed firms to the wages of non-displaced workers. The results suggest that displaced workers suffer losses that amount to ll% of their earnings before the actual separation occurs. The second part of the paper concerns union effects on wages in situations of long-run declining demand. The findings suggest that for females unions "harvest" the quasi-rents of declining firms by rising the union-nonunion wage gap.

Keywords: pre-displacement losses; comparison group; union-non-union wage gap; quasi-rents (search for similar items in EconPapers)
Date: 1992-06
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:pri:indrel:303

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