Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297440 
Year of Publication: 
2023
Series/Report no.: 
Bank of Canada Staff Working Paper No. 2023-55
Publisher: 
Bank of Canada, Ottawa
Abstract: 
We revisit the measurement of the sources and consequences of job displacement using Canadian job separation records. To circumvent administrative data limitations, conventional approaches address selection by identifying displacement effects through mass-layoff separations, which are interpreted as involuntary. We refine this procedure and find that only a quarter of mass-layoff separations are indeed layoffs. Isolating mass-layoff separations that reflect involuntary displacement, we find twice the earnings losses relative to existing estimates. We uncover heterogeneity in losses for separations with different reasons and timing, ranging from 15 percent for quits after a mass layoff to 60 percent for layoffs before it.
Subjects: 
Labour markets
Potential output
Productivity
JEL: 
E24
E32
J31
J63
J65
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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