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

Browning, Martin and Crossley, Thomas F (2008) 'The long-run cost of job loss as measured by consumption changes.' Journal of Econometrics, 145 (1-2). pp. 109-120. ISSN 0304-4076

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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. © 2008 Elsevier B.V. All rights reserved.

Item Type: Article
Uncontrolled Keywords: job displacement; consumption
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 04 Sep 2013 09:27
Last Modified: 18 Aug 2022 10:46
URI: http://repository.essex.ac.uk/id/eprint/7503

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