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JOB DISPLACEMENT AND THE INTER‐TEMPORAL MOVEMENT OF WORKERS THROUGH THE EARNINGS AND INCOME DISTRIBUTIONS
Author(s) -
JOLLY NICHOLAS A.
Publication year - 2013
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2011.00311.x
Subject(s) - earnings , panel study of income dynamics , displacement (psychology) , transfer payment , economics , labour economics , distribution (mathematics) , demographic economics , payment , government (linguistics) , econometrics , welfare , finance , mathematics , market economy , psychology , mathematical analysis , linguistics , philosophy , psychotherapist
This paper uses the Panel Study of Income Dynamics to examine how job displacement influences intragenerational earnings and income mobility. Job displacement increases the probability of downward labor earnings mobility for several years after separation occurs. Furthermore, the probability of being in the bottom half of the earnings distribution increases significantly, not only in the year of displacement, but also for several years afterwards. However, after considering additional measures of financial well‐being (income from other family members and government transfer payments), the short‐ and long‐term impact of displacement on movements throughout the distribution is reduced . ( JEL J63, J65)