Job Displacement, Inter-Regional Mobility and Long-Term Earnings

46 Pages Posted: 9 Jul 2018

See all articles by Terhi Maczulskij

Terhi Maczulskij

University of Jyväskylä - School of Business and Economics

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Tuomas Kosonen

University of Helsinki - Department of Political and Economic Studies

Abstract

We examine the effect of job displacement on regional mobility using linked employer-employee panel data for the 1995-2014 period. We also study whether displaced movers obtain earnings and employment gains compared to displaced stayers. The results show that job displacement increases the migration probability by ~70%. However, social capital in a region and housing characteristics decrease the propensity to move, indicating that people do not make the migration decisions solely based on short-term economic incentives. Migration has an immediate negative relationship with earnings, but the link diminishes as time passes and eventually turns positive for men. The link between migration and employment is nevertheless positive and persistent for both genders.

Keywords: unemployment, job displacement, migration, earnings, employment

JEL Classification: J61, J63

Suggested Citation

Maczulskij, Terhi and Bockerman, Petri and Kosonen, Tuomas, Job Displacement, Inter-Regional Mobility and Long-Term Earnings. IZA Discussion Paper No. 11635, Available at SSRN: https://ssrn.com/abstract=3209732

Terhi Maczulskij (Contact Author)

University of Jyväskylä - School of Business and Economics ( email )

University of Jyväskylä
PO Box 35
FIN 40351, FIN-40014
Finland

Petri Bockerman

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland
+358 9 2535 7332 (Phone)
+358 9 2535 7332 (Fax)

HOME PAGE: http://www.petribockerman.fi/

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

Tuomas Kosonen

University of Helsinki - Department of Political and Economic Studies ( email )

P.O. Box 54
FIN-00014 Helsinki
Finland

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