TY  - RPRT
        AU  - Orazem, Peter F.
AU  - Vodopivec, Milan
AU  - Wu, Ruth
        TI  - Worker Displacement during the Transition: Experience from Slovenia
        PY  - 2004/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1297
        UR  - https://www.iza.org/index.php/publications/dp1297
        AB  - 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.
        KW  - displacement
KW  - subsidies
KW  - wages
KW  - reemployment
KW  - Slovenia
KW  - selection
KW  - specific human capital
        ER  -