Code for "Sources of Displaced Workers’ Long-Term Earnings Losses"

Principal Investigator(s): View help for Principal Investigator(s) Marta Lachowska, W.E. Upjohn Institute for Employment Research; Alexandre Mas, Princeton University and NBER; Stephen A. Woodbury, Michigan State University and W.E. Upjohn Institute for Employment Research

Version: View help for Version V1

Name	File Type	Size	Last Modified
AER_replication_uploads			05/21/2020 03:00:PM

Project Citation:

Lachowska, Marta, Mas, Alexandre, and Woodbury, Stephen A. . Code for "Sources of Displaced Workers’ Long-Term Earnings Losses". Nashville, TN: American Economic Association [publisher], 2020. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-09-23. https://doi.org/10.3886/E118607V1

Project Description

Summary:

We estimate the magnitudes of reduced earnings, work hours, and wage rates of workers displaced during the Great Recession using linked employer-employee panel data from Washington State. Displaced workers’ earnings losses occurred mainly because hourly wage rates dropped at the time of displacement and recovered sluggishly. Lost employer-specific premiums explain only 17 percent of these losses. Fully 70 percent of displaced workers moved to employers paying the same or higher wage premiums than the displacing employers, but these workers nevertheless suffered substantial wage rate losses. Loss of valuable specific worker- employer matches explains more than half of the wage losses. (JEL C21, J22, J23, J38, J65)

Scope of Project

Subject Terms: Hours; Wages; Displaced workers; Unemployment; Reemployment policy; Earnings; Employers

JEL Classification:
      C21 Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
      J22 Time Allocation and Labor Supply
      J23 Labor Demand
      J38 Wages, Compensation, and Labor Costs: Public Policy
      J65 Unemployment Insurance; Severance Pay; Plant Closings

Geographic Coverage: Washington State

Time Period(s): 1/1/2002 – 12/31/2014

Collection Date(s): 2014 – 2014 (The data were obtained in the end of 2014 )

Universe: Universe consists of quarterly records from all unemployment insurance covered employers Washington State from 2002:I to 2014:IV and unemployment insurance claims records of individuals who claimed unemployment benefits in Washington State during the same period.

Data Type(s): program source code

Methodology

Data Source: Washington State Employment Security Department

Unit(s) of Observation: Individual-level data

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Published Versions

V1 [2020-09-23]

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