Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215247 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12851
Publisher: 
Institute of Labor Economics (IZA), Bonn
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 occupations 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 occupation's wage distribution.
Subjects: 
routine-replacing technological change
routine-intensity
labour market biographies
mass layoffs
Germany
difference-in-differences
JEL: 
J24
J63
O33
Document Type: 
Working Paper

Files in This Item:
File
Size
2.47 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.