How the Risk of Displacement for Older Workers Has Changed

18 Pages Posted: 15 Feb 2012

See all articles by Natalia Zhivan

Natalia Zhivan

Boston College - Center for Retirement Research

Mauricio Soto

International Monetary Fund (IMF)

Steven A. Sass

Boston College - Center for Retirement Research

Alicia H. Munnell

Boston College - Center for Retirement Research

Date Written: March 2012

Abstract

Using Blinder–Oaxaca decomposition and relying on the consistent design of the Displaced Worker Survey since 1996, this study analyses various factors contributing to the rising dislocation of older workers, such as changes in tenure, industry mix, educational attainment, and labor force participation. Although in the past older workers were less prone to displacement compared with prime‐age workers, this paper finds that older workers are now more likely to be displaced, conditional on education, manufacturing industry, and tenure. Declining tenure, a higher incidence of displacement in manufacturing, and a higher labor force participation among older workers largely explain the convergence of displacement rates among older and prime‐age workers.

JEL Classification: J14, J23, J26, J63, J70

Suggested Citation

Zhivan, Natalia and Soto, Mauricio and Sass, Steven A. and Munnell, Alicia, How the Risk of Displacement for Older Workers Has Changed (March 2012). LABOUR, Vol. 26, Issue 1, pp. 90-107, 2012. Available at SSRN: https://ssrn.com/abstract=2005508 or http://dx.doi.org/10.1111/j.1467-9914.2011.00537.x

Natalia Zhivan (Contact Author)

Boston College - Center for Retirement Research ( email )

Fulton Hall 550
Chestnut Hill, MA 02467
United States

Mauricio Soto

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Steven A. Sass

Boston College - Center for Retirement Research ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Alicia Munnell

Boston College - Center for Retirement Research ( email )

Fulton Hall 550
Chestnut Hill, MA 02467
United States
617-552-1762 (Phone)

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