The impact of displacement on the earnings of workers in Ireland
Wright, Peter W.
Economic and Social Studies
In this paper we estimate the earnings losses of displaced workers. We use a novel matched worker-firm dataset to estimate earnings losses associated with mass-layoff and closure events in Ireland. Using propensity score matching and difference-in-differences estimators, we find that in the year following displacement, workers who experience a mass-layoff incur losses of 77 per cent compared to losses of 46 per cent for those displaced following a closure, relative to earnings five periods prior to displacement. However, those who are re-employed immediately after displacement suffer much smaller losses of 36 per cent and 19 per cent in the mass-layoff and closure groups respectively. Those displaced in the 2008-2010 group suffer greater earnings losses than those displaced between 2005 and 2007.
Earnings , Workers , Ireland
McCarthy, N. and Wright, P. W. (2018) 'The Impact of Displacement on the Earnings of Workers in Ireland', Economic and Social Review, 49(4) Winter, pp. 373-417.
© 2018, Economic and Social Review.