Economic crises and unemployment persistence: Analysis of job losses during the Finnish 1990s recession
Verho, Jouko (2017-11-20)
Verho, Jouko
Valtion taloudellinen tutkimuskeskus
20.11.2017
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-274-206-3
https://urn.fi/URN:ISBN:978-952-274-206-3
Kuvaus
nonPeerReviewed
Tiivistelmä
This study estimates the effect of job loss for Finnish workers displaced during a severe recession in the early 1990s. The setting provides a sample of workers of which over 90% experienced unemployment after losing a job due to plant closure. We use linked employer-employee data to follow these workers up to 16 years after the job loss and to construct a closely matched comparison group of non-displaced workers. We estimate over 58% initial drop in employment and earnings after the job loss. At the end of follow-up, women's employment and earnings recover fully while men's employment remains 1–5% lower relative to the comparison groups and they suffer a 5–8% earnings loss. We also find large effects on long-term unemployment that diminish slowly and long-lasting effects on poverty risk.
Tutkimusteema
Labour markets and education
JEL
J64, J65
Avainsanat
unemployment, plant closings
Kokoelmat
- VATT Working Papers [164]