Earnings Loss Due to Displacement.
CENTER FOR NAVAL ANALYSES ALEXANDRIA VA
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This report presents findings, drawn from a number of studies, about earnings losses due to displacement. Losses are calculated by comparing the earnings of workers after they were displaced, with the earnings of similar workers, in similar conditions, who were not displaced. To measure the effects, it is necessary to distinguish displaced workers from those who left their jobs, voluntarily, either to take other jobs or to withdraw from the labor force. The findings are that industries in which losses are large have three characteristics in common workers are mostly male, the labor force is heavily unionized, and voluntary labor turnover is low. Within an industry, losses are generally largest among workers whose earnings have begun to grow rapidly. Losses are higher if workers are displaced into small labor markets or into labor markets where unemployment is already high. Among female workers, labor force withdrawal is more common than among males. As a result, findings about how displacement affects females are inconclusive.
- Personnel Management and Labor Relations