THE EFFECTS OF JOB DISPLACEMENT ON WAGE AND HEALTH

Based on a sample of displaced workers and their non-displaced siblings from Taiwan, we use difference-in-differences with family fixed effect approach to examine the impacts of job loss on wages and health. The main contribution of this study is to use non-displaced siblings of displaced workers as...

Full description

Saved in:
Bibliographic Details
Published inAcademia economic papers Vol. 44; no. 2; p. 127
Main Authors Tsou, Meng-Wen, Ho, Pei-Chuan, Liu, Jin-Tan
Format Journal Article
LanguageChinese
Published Taipei Institute of Economics, Academia Sinica 01.06.2016
Subjects
Displaced workers
Economic theory
Gender differences
Hospitalization
Occupational health
Shutdowns
Studies
Wages & salaries
Taiwan
Online AccessGet full text

Cover

More Information
Summary:Based on a sample of displaced workers and their non-displaced siblings from Taiwan, we use difference-in-differences with family fixed effect approach to examine the impacts of job loss on wages and health. The main contribution of this study is to use non-displaced siblings of displaced workers as a control group, which enables us to control for the unobserved genetic and family background characteristics and thereby mitigate the endogeneity problem of displacement. The monthly wage of displaced male workers reduces 5% within 1-2 years after plant closure, compared with that of their non-displaced brothers, and the effect is persistent within 2-5 years after displacement. In contrast, no significant wage loss is found for displaced female workers who were reemployed immediately after plant closure. Overall, the effect of wage reduction is more pronounced for men and lower-educated workers. We do not find evidence that job loss increases the probability of hospitalization. As hospitalization may not be an ap
ISSN:1018-161X
1810-4851