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The authors use findings from this study, in conjunction with their comprehensive interpretation of existing worker dislocation literature, to develop policy recommendations concerning prevailing and potential assistance programs. They conclude by proposing that any new policies designed to compensate dislocated workers should target those suffering the greatest losses while providing incentives to take new jobs - even if lower paying - as soon as possible. Programs which allow dislocated workers to receive compensation after regaining employment (modified earnings subsidies) are promoted as practical and financially feasible.


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  1. Introduction
  2. Evidence from Earlier Studies of the Costs of Worker Dislocation
  3. The Use of Administrative Data in the Study of Worker Dislocation
  4. Econometric Issues in the Estimation of Earnings Losses
  5. Earnings Losses Associated With Worker Separations
  6. Earnings Losses and Mass Layoffs
  7. Conclusions and Policy Considerations


9780880991438 (pbk.) ; 9780585282992 (ebook)

Subject Areas

LABOR MARKET ISSUES; Job security and unemployment dynamics; Dislocated workers

The Costs of Worker Dislocation




Jacobson, Louis, Robert LaLonde, and Daniel Sullivan. 1993. The Costs of Worker Dislocation. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.

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Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 4.0 International License.