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Working Paper
Uncovering the Differences among Displaced Workers: Evidence from Canadian Job Separation Records
Using administrative data from Canada that is unique in providing information on the underlying reasons for and timing of job separations, we document that only 25 percent of mass-layoff separations, as identified through existing methods, are actual layoffs. We uncover significant differences in earnings and employer premium dynamics following layoffs and quits during mass layoffs. We also show that employers undergoing mass layoffs already experience substantial employment contractions prior to the mass layoffs, especially due to early quits. We find that employers lay off less productive ...
Working Paper
Uncovering the Differences among Displaced Workers: Evidence from Canadian Job Separation Records
We revisit the measurement of the sources and consequences of job displacement using Canadian job separation records. To circumvent administrative data limitations, conventional approaches address selection by identifying displacement effects through mass-layoff separations, which are interpreted as involuntary. We refine this procedure and find that only a quarter of mass-layoff separations are indeed layoffs. Isolating mass-layoff separations that reflect involuntary displacement, we find twice the earnings losses relative to existing estimates. We uncover heterogeneity in losses for ...
Working Paper
The Heterogeneous Impacts of Job Displacement: Evidence from Canadian Job Separation Records
When estimating earnings losses upon job separations, existing strategies focus on mass-layoff separations to distinguish involuntary separations from voluntary separations. We revisit the measurement of the sources and consequences of involuntary separations using Canadian job separation records. We refine existing strategies and find that only a quarter of mass-layoff separations are indeed layoffs. Isolating mass-layoff separations that reflect involuntary displacement, we find twice the earnings losses relative to existing estimates. We also uncover significant heterogeneity in losses for ...