%0 Report
        %A Orazem, Peter F.
%A Vodopivec, Milan
%A Wu, Ruth
        %T Worker Displacement during the Transition: Experience from Slovenia
        %D 2004
        %8 2004 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1297
        %U https://www.iza.org/index.php/publications/dp1297
        %X The transition to market in Slovenia created labor displacements that were on par or greater than that experienced in North America in the 1980s. A simple theoretical model suggests that factors which raise the probability of layoff should also increase the probability of a quit, predictions that are borne out in data. Probability of both layoffs and quits fell with worker tenure, firm profitability and expected severance costs. Individuals facing a higher probability of displacement accepted slower wage growth than otherwise comparable workers. The incentives to avoid displacement were strong – workers that actually were displaced faced a slow process of transiting out of unemployment with only one-third finding reemployment. Correcting for selection, real wage losses for displaced workers are comparable to those reported for displaced workers in North America.
        %K displacement
%K subsidies
%K wages
%K reemployment
%K Slovenia
%K selection
%K specific human capital