Local Industry Employment Share and the Experiences of Displaced Workers
Wendy A. Stock
Abstract
Wendy A. Stock
Abstract
This paper examines how industries' share of employment in local labor markets affects displaced workers' re-employment, industry switching and earnings losses. A key result is that workers displaced from industries with low employment shares are more likely to switch industries after displacement. Earnings loss estimates indicate that for most workers, displacement from an industry that employs a smaller share of the local labor force is associated with larger earnings losses.
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This paper examines how industries' share of employment in local labor markets affects displaced workers' re-employment, industry switching and earnings losses. A key result is that workers displaced from industries with low employment shares are more likely to switch industries after displacement. Earnings loss estimates indicate that for most workers, displacement from an industry that employs a smaller share of the local labor force is associated with larger earnings losses.
Key concepts: Displaced workers, Earnings, Labour economics, Displacement (psychology), Business, Wage share, Job loss, Demographic economics