Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146116
Authors: 
Fackler, Daniel
Rippe, Lisa
Year of Publication: 
2016
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 861
Abstract: 
Using German survey data, we investigate the relationship between involuntary job loss and regional mobility. Our results show that job loss has a strong positive effect on the propensity to relocate. We also analyze whether the high and persistent earnings losses of displaced workers can in part be explained by limited regional mobility. Applying an event study approach, which controls for worker fixed effects, our findings do not support this conjecture as we find substantial long lasting earnings losses for both movers and stayers. In the short run, movers even face slightly higher losses, but the differences between the two groups of displaced workers are never statistically significant. This challenges whether migration is a beneficial strategy in case of involuntary job loss.
Subjects: 
job displacement
plant closure
regional mobility
earnings
SOEP
JEL: 
J61
J63
Document Type: 
Working Paper

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