The Impact of Job Opportunities, Housing Costs, and Mobility Decisions on the Re-employment Experiences of Displaced Workers

46 Pages Posted: 6 Jun 2024

See all articles by Keren Horn

Keren Horn

University of Massachusetts

Henry Pollakowski

Massachusetts Institute of Technology (MIT)

Jeffrey E. Zabel

Tufts University - Department of Economics

Joseph Chance

The Brattle Group

Date Written: May 20, 2024

Abstract

We create a location-specific longitudinal data set to examine employment outcomes for displaced workers. Our motivation stems from previous research having not considered the joint choice of non-employment duration and metropolitan labor market. We estimate a model of jobless duration with competing risks of exiting to a stable job in the same or competing MSAs and find that the benefits (job opportunities) and costs (housing) in both home and competing MSAs have substantial effects on duration/location outcomes. We then estimate an earnings model following workers post-displacement, finding important heterogeneity in post-mass layoff earnings losses across labor market conditions and industries.

Suggested Citation

Horn, Keren and Pollakowski, Henry O. and Zabel, Jeffrey E. and Chance, Joseph, The Impact of Job Opportunities, Housing Costs, and Mobility Decisions on the Re-employment Experiences of Displaced Workers (May 20, 2024). MIT Center for Real Estate Research Paper 24/05, Available at SSRN: https://ssrn.com/abstract=4852572 or http://dx.doi.org/10.2139/ssrn.4852572

Keren Horn (Contact Author)

University of Massachusetts ( email )

Henry O. Pollakowski

Massachusetts Institute of Technology (MIT) ( email )

Jeffrey E. Zabel

Tufts University - Department of Economics ( email )

Medford, MA 02155
United States
617-627-2318 (Phone)
617-627-3917 (Fax)

Joseph Chance

The Brattle Group ( email )

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