Working Paper Revision

Job Displacement and Job Mobility: The Role of Joblessness

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: displaced workers; job mobility; job ladders;

JEL Classification: J63; J64;

https://doi.org/10.26509/frbc-wp-201927r

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers

Publication Date: 2021-08-31

Number: 19-27R

Related Works

• Working Paper Revision: Job Displacement and Job Mobility: The Role of Joblessness