Working Paper: NBER ID: w29187
Authors: Bruce Fallick; John C. Haltiwanger; Erika McEntarfer; Matthew Staiger
Abstract: Who is harmed by and who benefits from worker reallocation? We investigate the earnings consequences of changing jobs and find a wide dispersion in outcomes. This dispersion is driven not by whether the worker was displaced, but by the duration of joblessness between job spells. Job movers who experience joblessness suffer a persistent reduction in earnings and tend to move to lower-paying firms, suggesting that job ladder models offer a useful lens through which to understand the negative consequences of job separations.
Keywords: Job Displacement; Job Mobility; Joblessness; Earnings Outcomes
JEL Codes: E32; J3; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| joblessness duration (J64) | earnings losses (J17) |
| joblessness duration (J64) | lower-paying job transitions (J62) |
| job changers with minimal joblessness (J63) | higher-paying jobs (J39) |
| prolonged joblessness (J64) | earnings losses (J17) |
| joblessness duration (J64) | downward movement on the job ladder (J62) |
| job changers (J62) | earnings losses (J17) |
| job ladder models (J62) | explain relationship between joblessness duration and earnings outcomes (J64) |