Title

Displaced Workers in Mass Layoffs: Pre-Displacement Earnings Losses and the Unions Effect

Author(s)

Sara De La Rica Sara De La Rica (University of the Basque Country and Princeton University)

Abstract

In the first part of the paper, I compare the pre-displacement earnings of workers displaced from distressed firms to the wages of non-displaced workers. The results suggest that displaced workers suffer losses that amount to ll% of their earnings before the actual separation occurs. The second part of the paper concerns union effects on wages in situations of long-run declining demand. The findings suggest that for females unions "harvest" the quasi-rents of declining firms by rising the union-nonunion wage gap.

Creation Date

1992-06

Section URL ID

IRS

Paper Number

303

URL

https://dataspace.princeton.edu/bitstream/88435/dsp018049g5055/1/303.pdf

File Function

Jel

Keyword(s)

pre-displacement losses; comparison group; union-non-union wage gap; quasi-rents

Suppress

false

Series

1