Job Displacement and Job Mobility: The Role of Joblessness
||Original Paper: WP 19-27|
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: displaced workers, job mobility, job ladders.
JEL codes: J63, J64.
Suggested citation: Fallick, Bruce, John Haltiwanger, Erika McEntarfer, Matthew Staiger. 2021. "Job Displacement and Job Mobility: The Role of Joblessness." Federal Reserve Bank of Cleveland, Working Paper No. 19-27R. https://doi.org/10.26509/frbc-wp-201927r.