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Cited by 194

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Sources of Displaced Workers’ Long-Term Earnings Losses

Lachowska, Marta, Mas, Alexandre, Woodbury, Stephen A.·2020·American Economic Review

Abstract

We estimate the magnitudes of reduced earnings, work hours, and wage rates of workers displaced during the Great Recession using linked employer-employee panel data from Washington state. Displaced workers’ earnings losses occurred mainly because hourly wage rates dropped at the time of displacement and recovered sluggishly. Lost employer-specific premiums explain only 17 percent of these losses. Fully 70 percent of displaced workers moved to employers paying the same or higher wage premiums than the displacing employers, but these workers nevertheless suffered substantial wage rate losses. Loss of valuable specific worker-employer matches explains more than one-half of the wage losses. (JEL E32, J22, J31, J63, R23)

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Metadata

Authors
Lachowska, M., Mas, A., & Woodbury, S. A.
Venue
American Economic Review
Published
2020-10-01
Volume
110
Issue
10
Pages
3231-3266
ISSN
0002-8282 (ISSN-L)
OpenAlex
W2757022184
Cited by
194
References
1
FWCI
16.30
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Sources of Displaced Workers’ Long-Term Earnings Losses. https://app.cochat.ai/papers/10.1257/aer.20180652
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Lachowska, M., Mas, A., & Woodbury, S. A. (2020). Sources of Displaced Workers’ Long-Term Earnings Losses. American Economic Review. https://doi.org/10.1257/aer.20180652

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