The effects of being out of the labor market on subsequent wages: evidence for Uruguay
Rodrigo Arim () and
Andrés Dean ()
No 12-10, Documentos de Trabajo (working papers) from Instituto de Economia - IECON
Based on administrative data combining workers' earnings histories and unemployment insurance benefits, we document short and long term wage losses for a large sample of Uruguayan formal workers with high tenure. We are able to study how wage losses vary across age groups, gender, industry and size of the firm. We also assess differences between switchers and non switchers, and consider the effect of the economic cycle. Our data allows providing original evidence about the smoothing role of the unemployment insurance program, even in a developing country. Our main findings indicate that workers loose around 48% of their pre-displacement wages in the first quarter after displacement, and after five years, losses are still 3%.
Keywords: Wage losses; Displacement (search for similar items in EconPapers)
JEL-codes: J31 J63 J65 (search for similar items in EconPapers)
Pages: 22 pages
New Economics Papers: this item is included in nep-lab, nep-lma and nep-ltv
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Journal Article: The Effects of Being Out of the Labor Market on Subsequent Wages: Evidence for Uruguay (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ulr:wpaper:dt-10-12
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