CReAM - Brown Bag Seminar presented by Alice Kuegler (CReAM, UCL)
19 March 2019, 12:30 pm–1:30 pm
'Displacement Effects in Manufacturing: The Role of Firms' with Ines Helm and Uta Schoenberg
Event Information
Open to
- UCL staff | UCL students
Organiser
-
Department of Economics
Location
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Room 321Drayton House30 Gordon StreetLondonWC1H 0AXUnited Kingdom
'Displacement Effects in Manufacturing: The Role of Firms' with Ines Helm and Uta Schoenberg
About the Speaker
Alice Kuegler
Post Doctoral Research Fellow at CReAM, UCL
Abstract:
We assess the impact of the decline in manufacturing jobs on the cost of job displacement, using administrative data on firms and workers in Germany. We start by documenting that manufacturing firms traditionally paid substantial wage premia and that these high-wage jobs disappeared disproportionately over time. We then analyse what role such losses in the firm wage premium play in determining wage losses following job displacement. We show that low-skilled workers in manufacturing suffer larger wage losses than the high-skilled after job displacement, and that about half of the wage loss is explained by the firm at which a worker was employed before displacement. Persistent wage losses from layoffs, and the role of the firm in explaining these, have increased over time.