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The long-run cost of job loss as measured by consumption changes

[Zeitschriftenartikel]

Browning, Martin; Crossley, Thomas F.

Zitationshinweis

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Abstract We consider the measurement of the cost of job displacement. With a Canadian panel survey we compare the consumption growth of households that experienced a permanent layoff to a control group of households that experienced a temporary layoff with known recall date. Because the firms employing the latter group are providing insurance, these workers approximate a benchmark of full insurance against job loss shocks. We estimate that permanent layoffs experience an average consumption loss of between 4% and 10%. Older workers and workers with high job tenure have losses closer to the top of this range.
Klassifikation Arbeitsmarktforschung
Freie Schlagwörter job displacement; consumption
Sprache Dokument Englisch
Publikationsjahr 2008
Seitenangabe S. 109-120
Zeitschriftentitel Journal of Econometrics, 145 (2008) 1-2
DOI http://dx.doi.org/10.1016/j.jeconom.2008.05.005
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)
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