Table 9

Effects of Layoffs on Wages

Log real wage (1)Occupation predicted wage (2)Occupation predicted wage(3)
Layoff in last year−0.050***−0.011***−0.011***
(0.007)(0.002)(0.002)
Layoff 2 years ago−0.052***−0.008***−0.008***
(0.007)(0.002)(0.002)
Layoff 3 years ago−0.025***−0.005**−0.006**
(0.008)(0.002)(0.002)
Layoff 4 years ago−0.030***−0.005**−0.008***
(0.008)(0.002)(0.002)
Experience:
  2 to 30.105***0.017***0.018***
(0.005)(0.001)(0.002)
  4 to 60.189***0.034***0.036***
(0.007)(0.002)(0.002)
  7 to 90.251***0.044***0.046***
(0.009)(0.003)(0.003)
  10 to 120.272***0.048***0.050***
(0.013)(0.003)(0.004)
  13 to 150.291***0.052***0.055***
(0.016)(0.004)(0.005)
  16 to 180.291***0.057***0.060***
(0.020)(0.005)(0.006)
  19 to 210.274***0.055***0.057***
(0.024)(0.006)(0.007)
  22 to 250.279***0.053***0.054***
(0.027)(0.007)(0.008)
Constant2.209***2.368***2.367***
(0.008)(0.002)(0.002)
Observations102,858102,858102,858
R20.0990.0420.042

  • Notes: *** p < 0.01, ** p < 0.05, * p < 0.1. Standard errors in parentheses. All regressions include worker fixed effects. See Appendix 2 for the O*Net task categories used to create the task measures that are the dependent variables. The dependent variable in Column 1 is the log real wage in 2006 dollars. The dependent variable in Column 2 is the predicted log real wage from a regression of wages on the ASVAB scores, interpersonal skill, education, and the five task measures. The dependent variable in Column 3 is the predicted log real wage from a regression of wages on the ASVAB scores, interpersonal skill, education, the five task measures, education interacted with all five task measures, and each “own” score interacted with its task measure. Tasks are in standard deviations. I classify a job change as a layoff if the worker reports he left his prior job due to being fired or a plant closing.