The Effects of Job Displacement on Career Outcomes by Worker Characteristics

Jennie E. Brand, University of Wisconsin at Madison

Job displacement is affecting the security of long-term steady employment in America breeding an uneasy concern over the ability of workers to sustain a successful career characterized by upward mobility. Using Wisconsin Longitudinal Study data, I estimate long-term effects of job displacement on a range of career outcomes using conditional difference-in-differences matching estimation separately by sex, educational attainment, broad occupational and industry classification. Results indicate that in general, displaced workers have a striking level of non-employment, but that there are several interesting trends by occupation, education, and gender. Matching results suggest that men's economic and benefits losses are worse than women's, but women's job authority losses are worse than men's. Education reduces losses for women, but not for men, except for advanced degree holders. Blue collar workers suffer the greatest economic and benefits losses, but upper white collar workers also suffer occupational status declines and job autonomy and authority losses.