The Sources of the Wage Losses of Displaced Workers

Notes: Composition of the sample by year and displacement status.

Notes: The dependent variable in all regression models is the natural log of the real monthly wages. Columns 1, 2, and 3 report, respectively, the OLS, the base, and full model regression coefficient estimates. Age (and its square) and time dummies included in the OLS model; age squared, time dummies, and worker fixed effects included in the base model; age squared, time dummies, worker–firm, and job title fixed effects included in the full model. Specification 1 presents the estimates of the coefficients of the displacement dummies for each year before and after displacement. Specification 2 aggregates the years into two periods before (years D ₋₁₀–D ₀) and after (years D ₁–D ₁₀) displacement; Specification 3 is a simple reparametrization of Specification 2 providing the net effect. Standard errors in Column 1 are clustered by worker and firm and in Columns 2 and 3 are bootstrapped at the worker level using 500 resamplings. The total number of observations equals 16,731,112.

Notes: This table reports the decomposition of the wage loss variation of displaced workers from the base (Column 2) to the full models (Column 3)of Table 3. Columns 2–4 report the contribution of the corresponding fixed effect for the observed change in the estimates of the wage loss from the base to the full model computed according to the procedure described in Section IV.C. Bootstrapped standard errors in parentheses, where resampling was done at the worker level using 500 replications. The total number of observations equals 16,731,112.

Notes: See the notes to Table 4.

Notes: See the notes to Table 4.

Notes: See the notes to Table 4. We report the wage loss estimates following a simple reparametrization providing the net effect—row labeled “Net.” The total number of observations equals 20,484,030.

Notes: See the notes to Table 4. We report the wage loss estimates following a simple reparametrization providing the net effect—row labeled “Net.” The total number of observations equals 19,228,339.

Notes: See the notes to Table 4. We report the wage loss estimates following a simple reparametrization providing the net effect—row labeled “Net.” A mass layoff occurs when a firm reduces its workforce by more than 30 percent in two consecutive periods with a minimum of six separations. The total number of observations equals 15,982,889.

Notes: See the notes to Table 4. We report the wage loss estimates following a simple reparametrization providing the net effect—row labeled “Net.” The total number of observations equals 16,731,112.

Notes: See the notes to Table 4. We report the wage loss estimates following a simple reparametrization providing the net effect—row labeled “Net.” The total number of observations equals 16,731,112. The random trend model adds an individual-specific time trend to the base and full models.

Notes: The largest connected set is the largest group of connected worker–firm pairs and job titles. Singletons are groups with only one observation.