EXPLAINING WAGE LOSSES AFTER JOB DISPLACEMENT: EMPLOYER SIZE AND LOST FIRM WAGE PREMIUMS

• 成果类型: Article
• 署名作者: Fackler, Daniel; Mueller, Steffen; Stegmaier, Jens
• 署名单位: Goethe University Frankfurt; Leibniz Association; Leibniz Institut fur Wirtschaftsforschung Halle (IWH); Otto von Guericke University
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvab022
• 发表日期: 2021
• 页码: 2695-2736
• 关键词: earnings losses; income losses; workers; COSTS; rise

摘要

This paper investigates whether wage losses after job displacement are driven by lost firm wage premiums or worker productivity depreciations. We estimate losses in wages and firm wage premiums, the latter being measured as firm effects from a two-way fixed-effects wage decomposition. Using new German administrative data on displacements from small and large employers, we find that wage losses are to a large extent explained by losses in firm wage premiums and that premium losses are largely permanent. We show that losses strongly increase with pre-displacement employer size. This provides an explanation for large and persistent wage losses reported in previous displacement studies typically focusing on large employers, only.