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ERIC Number: EJ874090
Record Type: Journal
Publication Date: 2010
Pages: 27
Abstractor: As Provided
Reference Count: 41
ISSN: ISSN-0022-166X
The Income Losses of Displaced Workers
Hijzen, Alexander; Upward, Richard; Wright, Peter W.
Journal of Human Resources, v45 n1 p243-269 Win 2010
We use a new, matched worker-firm dataset for the United Kingdom to estimate the income loss resulting from firm closure and mass layoffs. We track workers for up to nine years after the displacement event, and the availability of predisplacement characteristics allows us to implement difference-in-differences estimators using propensity score matching methods. Income losses during the first five years after the displacement event are in the range 18-35 percent per year for workers whose firm closes down, and 14-25 percent for workers who exit a firm which suffers a mass layoff. These losses are largely due to periods of nonemployment, which is consistent with previous work from Europe, but contrasts with that from the United States. (Contains 32 footnotes, 8 tables, and 6 figures.)
University of Wisconsin Press. 1930 Monroe Street, Madison, WI 53711-2059. Tel: 608-263-0668; Fax: 608-263-1173; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: United Kingdom; United States