Job Displacement Penalties in Japan

38 Pages Posted: 21 Jul 2005

See all articles by Michael L. Bognanno

Michael L. Bognanno

Temple University - Department of Economics; IZA Institute of Labor Economics

Lisa Delgado

Temple University

Date Written: July 2005

Abstract

The costs of job displacement are examined on a sample of Japanese workers successfully provided job placement services from 2000 to 2003, a period of economic stagnation and structural change in Japan. We find that displaced workers suffer a loss of approximately $1,100 for each additional year of age. Workers also incur a large penalty when they change industries after being displaced. The age-earnings loss relationship is consistent with the operation of a delayed compensation scheme in large firms.

Keywords: job displacement cost, Japan

JEL Classification: J31, J41, J63, J65

Suggested Citation

Bognanno, Michael L. and Delgado, Lisa, Job Displacement Penalties in Japan (July 2005). IZA Discussion Paper No. 1650, Available at SSRN: https://ssrn.com/abstract=758324

Michael L. Bognanno (Contact Author)

Temple University - Department of Economics ( email )

Philadelphia, PA 19122
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Lisa Delgado

Temple University ( email )

Philadelphia, PA 19122
United States

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