TY  - RPRT
        AU  - Jung, Philip
AU  - Kuhn, Moritz
        TI  - Earnings Losses and Labor Mobility over the Lifecycle
        PY  - 2012/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6835
        UR  - https://www.iza.org/index.php/publications/dp6835
        AB  - Extensive literature demonstrates that workers with high tenure suffer large and persistent earnings losses when they are displaced. We study the reasons behind these losses in a tractable search model that includes a lifecycle dimension, endogenous job mobility, and worker- and match-heterogeneity. The model jointly explains key characteristics of the U.S. labor market such as large average transition rates, a large share of stable jobs, and earnings losses after displacement. We decompose earnings losses and find that only 50% result from wage loss, and endogenous reactions and selection account for the remainder. These findings have important implications for welfare costs of displacement and labor market policies.
        KW  - labor-market transitions
KW  - lifecycle
KW  - earnings losses
KW  - turbulence
        ER  -