Alternative Specifications for Separations Elasticities Based on Matched Event Study
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | |
|---|---|---|---|---|---|---|---|
| First stage | 0.176 | 0.171 | 0.177 | 0.324 | 0.162 | ||
| (0.004) | (0.004) | (0.004) | (0.004) | (0.024) | |||
| IV estimates | |||||||
| Separations | -2.100 | -1.961 | -1.992 | -2.027 | -0.272 | -1.536 | -2.322 |
| (0.054) | (0.057) | (0.054) | (0.072) | (0.012) | (0.037) | (0.527) | |
| E-E separations | -4.031 | -3.771 | -3.803 | -3.996 | -0.445 | -3.083 | -4.100 |
| (0.154) | (0.161) | (0.153) | (0.210) | (0.026) | (0.115) | (1.068) | |
| E-N separations | -2.048 | -1.958 | -1.968 | -3.178 | -0.385 | -1.489 | -3.228 |
| (0.071) | (0.076) | (0.072) | (0.152) | (0.026) | (0.049) | (1.035) | |
| Obs. (millions) | 3.068 | 2.999 | 2.984 | 3.069 | 3.073 | 3.082 | 0.112 |
| Movers | 346,261 | 340,000 | 338,562 | 346,714 | 347,193 | 346,684 | 11,044 |
| F-statistic (IV) | 1,397 | 1,279 | 1,345 | 196 | 4,447 | 32 | |
| Quarterly earnings | Y | ||||||
| Mass Layoff IV | |||||||
| Firm wage | Y | Y | Y | Y | Y | ||
| BLM firm cluster | Y | ||||||
| OLS | Y | ||||||
| Firm value control | Y | ||||||
| Firm amenities control | Y | ||||||
Notes: Main spec. FE correspond to Table 4, Column 4 and are firm by event and calendar time by tenure bin by initial wage at hire, all for the origin firm, and where tenure and hire wage are divided into eight bins. Firm value, VEE. is estimated based on the procedure described in Sorkin (2018) over the full sample of observations in the worker–quarter panel, and for the separations regression in Column 2 above has elasticity -0.222 (SE = 0.033). The firm amenities value is calculated as the difference between the AKM firm effect and firm value, VEE, and the separations elasticity with respect to the amenities value in Column 3 is -0.291 (SE = 0.038). “BLM firm cluster” is estimated based on the procedure described in Bonhomme, Lamadon, and Manresa (2019) and is used as an alternative instrument in place of the firm wage. OLS indicates that the firm wage instrument is not used; that is, separations are regressed directly on the change in log own wage at initial transition. Quarterly earnings indicates the main specification with quarterly earnings instead of hourly wage, for both the firm and own wage changes. Mass layoffs correspond to the quarter of initial transition from the Origin firm and are defined in the full panel (before restrictions based on firm size and short spells) following the WARN Act definition: a firm with at least 100 full time workers has at least either (i) 500 fewer workers in the following four quarters or (ii) one-third fewer workers in the following four quarters. Standard errors shown in parentheses are clustered at the level of Origin firm by initial separation quarter.