Friday, January 30, 2015

Do We Know Why Earnings Fall with Job Displacement

"After being displaced from their jobs, workers experience reduced earnings for many years and
are at greater risks of other problems as well. The ills suffered by displaced workers motivated several recent expansions of government programs, including the unemployment insurance system, and have spurred calls for wage insurance that would provide longer -run earnings replacement. However, while the average size and the individual characteristics associated with the losses are relatively clear, the theory of displacement induced earnings loss is scattered..." 
Earnings and job displacement

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