Displaced Workers in the United States and the Netherlands

Abstract

This paper studies worker displacement in the United States and the Netherlands. We discuss the relevant institutions, and we analyze the incidence and consequences of displacement. In the 1993-1995 period, displacement rates in the US and the Netherlands are about the same, and vary similarly with tenure and gender. Also, we find some evidence that displacement hastens retirement in both countries. Finally, we do not find much evidence for adverse wage or earnings effects of displacement in either country. In the Netherlands, however, displaced workers may be more likely to move into alternative jobs directly, but, if they fail to do so, face longer re-employment durations. This renders an isolated comparison of wage discounts less informative.

JEL Classification: J60, J31, E24