Scandinavian Working Papers in Economics
Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy
No 2024:10: The heterogeneous earnings impact of job lossacross workers, establishments, and markets.
Susan Athey, Lisa Simon, Oskar Skans (), Johan Johan Vikström () and Yaroslav Yakymovych
Additional contact information
Susan Athey: Stanford University
Lisa Simon: Revelio Labs
Oskar Skans: Dep. of Economics, Uppsala University
Johan Johan Vikström: IFAU; Dep. of Economics, Uppsala University
Yaroslav Yakymovych: Institute for Housing and Urban Research, Uppsala University
Abstract: Using generalized random forests and rich Swedish administrative data, we show that the earnings effects of job displacement due to establishment closures are highly heterogeneous. We find as much heterogeneity within as across closing establishments, and within as across worker types defined by age and schooling. We display the potential of market-based policy interventions by showing that much of the heterogeneity across establishments is shared within markets. Several results suggest that the effect heterogeneity disfavors already vulnerable workers. Thus, targeted policy interventions may be justified to a larger extent than suggested by estimated average earnings effects.
Keywords: Plant closures; heterogeneous effects; GRF
Language: English
72 pages, May 15, 2024
Full text files
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