Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261295 
Year of Publication: 
2022
Series/Report no.: 
ZEW Discussion Papers No. 22-019
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
Routine-intensive occupations have been declining in many countries, but how does this affect individual workers' careers if this decline is particularly severe in their local labor market? This paper uses administrative data from Germany and a matched difference-in-differences approach to show that the individual costs of job loss strongly depend on the task-bias of regional structural change. Workers displaced from routine manual occupations have substantially higher and more persistent employment and wage losses in regions where such occupations decline the most. Regional and occupational mobility partly serve as an adjustment mechanism, but come at high cost as these switches also involve losses in firm wage premia. Non-displaced workers, by contrast, remain largely unaffected by structural change.
Subjects: 
routine-biased structural change
local labor markets
displacement,mass-layoffs
plant closures
matching
difference-in-differences
event study
JEL: 
J24
J63
J64
J65
O33
R11
Document Type: 
Working Paper

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