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

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

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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
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 04 Sep 2013 09:27
Last Modified: 04 Feb 2019 11:15

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