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Inhaltsbereich: Institut für Arbeitsmarkt- und Berufsforschung

Occupational routine-intensity and the costs of job loss: evidence from mass layoffs

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Abstract

"This paper analyses how differences in the degree of occupational routine-intensity affect the costs of job loss. We use worker-level data on mass layoffs in Germany between 1980 and 2010 and provide causal evidence that workers who used to be employed in more routine-intensive occupa-tions suffer larger and more persistent earnings losses after the mass layoff. Furthermore, we are able to show that, at least initially, earnings losses are primarily due to a reduction in the number of days in employment, suggesting that routine-intensive workers face considerable frictions in the adjustment to job loss. Conditional on finding a new job, routine-intensive workers are more likely to change their occupations but end up systematically in the lower end of their new occupa-tion's wage distribution." (Author's abstract, IAB-Doku) ((en))

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Bibliographical information

Blien, Uwe; Dauth, Wolfgang; Roth, Duncan (2019): Occupational routine-intensity and the costs of job loss: evidence from mass layoffs. (IAB-Discussion Paper, 25/2019), N├╝rnberg, 45 p.
 

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