Rose, Evan K. <br/><br/>
How Replaceable Is a Low-Wage Job? / 
Evan K. Rose, Yotam Shem-Tov. 
 - Cambridge, Mass.  National Bureau of Economic Research  2023. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w31447 .
 - Working Paper Series (National Bureau of Economic Research)  no. w31447. .
<br/><br/> July 2023. 
<br/><br/> We study the long-run consequences of losing a low-wage job using linked employer-employee wage records and household surveys. For full-time workers earning $15 per hour or less, job loss due to an idiosyncratic, firm-wide contraction generates a 13% reduction in earnings six years later and over $40,000 cumulative lost earnings. Most of the long-run decrease stems from reductions in employment and hours as opposed to wage rates: job losers are twice as likely to report being unemployed and looking for work. By contrast, workers initially earning $15-$30 per hour see comparable long-run earnings losses driven primarily by reductions in hourly wages. Calibrating a dynamic job ladder model to the estimates implies that the rents from holding a full-time $15 per hour job relative to unemployment are worth about $20,000, more than seven times monthly earnings. 
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<br/><br/><label>Subjects--Topical Terms: </label><br/>Labor Economics: General<br/>Unemployment: Models, Duration, Incidence, and Job Search