Job Loss and Effects on Firms and Workers
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This paper serves as an introduction and (incomplete) survey of the wide-ranging literature on job loss. We begin with a discussion of job stability in the US and the commitment between firms and workers, and how this has changed in recent years. We then focus on the short and long-term consequences to workers (i.e. wages, health outcomes) following a layoff, and the effect which mass layoffs have on future firm performance. The changing nature of these relationships over the past several decades is a central theme of this paper. We review the common data sources used to examine these questions, and identify many influential papers on each topic. Additionally, we discuss alternative policies to the typical mass layoff, such as worksharing.
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2011-06-09
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job loss; work sharing; layoffs; compensation
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preprint