Skill mismatch and the costs of job displacement / Frank Neffke, Ljubica Nedelkoska, Simon Wiederhold ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
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Discovery
1847008011
URN
urn:nbn:de:gbv:3:2-969573
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, May 2023
Umfang
1 Online-Ressource (III, 43 Seiten, 2,23 MB)
Ausgabevermerk
Sprache
eng
Anmerkungen
Literaturverzeichnis: Seite 27-31
Inhaltliche Zusammenfassung
When workers are displaced from their jobs in mass layoffs or firm closures, they experience lasting adverse labor market consequences. We study how these consequences vary with the amount of skill mismatch that workers experience when returning to the labor market. Using novel measures of skill redundancy and skill shortage, we analyze individuals‘ work histories in Germany between 1975 and 2010. We estimate difference-in-differences models, using a sample in which we match displaced workers to statistically similar non-displaced workers. We find that displacements increase the probability of occupational change eleven fold, and that the type of skill mismatch after displacement is strongly associated with the magnitude of post-displacement earnings losses. Whereas skill shortages are associated with relatively quick returns to the counterfactual earnings trajectories that displaced workers would have experienced absent displacement, skill redundancy sets displaced workers on paths with permanently lower earnings.
Schriftenreihe
IWH-Diskussionspapiere ; 2023, no. 11 (May 2023) ppn:837399270