Munich Personal RePEc Archive

Long-Term Impacts of Short-Term Income Replacement Ratios After Job Loss

Barnette, Justin (2021): Long-Term Impacts of Short-Term Income Replacement Ratios After Job Loss.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_106891.pdf

Download (430kB) | Preview

Abstract

How does the first job after involuntary displacement affect later income growth? Displaced workers replace 133% of their pre-displacement hourly income within two years of involuntary displacement on average but this is not enough to catch up to those of the same age and similar education. Changes in these ratios have small impacts on the long-term. These results persist through robustness checks and align with a labor income process calibrated to the PSID. However, 35% of all displaced workers recover as defined in this paper. Being male or being white each increases the probability of recovering by about 20%.

Available Versions of this Item

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.