Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/336397 
Year of Publication: 
2024
Citation: 
[Journal:] Latin American Journal of Central Banking (LAJCB) [ISSN:] 2666-1438 [Volume:] 5 [Issue:] 2 [Article No.:] 100109 [Year:] 2024 [Pages:] 1-17
Publisher: 
Elsevier, Amsterdam
Abstract: 
This paper examines the effects of job loss on workers. Using detailed administrative data from Costa Rica, we use a clustering algorithm to group workers into types based on their employment stability and job search efficiency. Our results show that job displacement leads to persistent earning losses for workers, particularly during economic downturns such as the COVID-19 pandemic. Displaced workers during the pandemic are moving to more productive and higher-paying firms, especially those types with initially higher earnings potentials and stable employment histories. Nonetheless, these workers are also shifting to lower-paying occupations. The findings suggest that changes in job characteristics rather than employer characteristics should be considered to explain earning losses and labor reallocation in the aftermath of the pandemic.
Subjects: 
COVID-19 labor market effects
Job loss
Job reallocation
Wage dynamics
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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