TY  - BOOK
AU  - Rose,Evan K.
AU  - Shem-Tov,Yotam
ED  - National Bureau of Economic Research.
TI  - How Replaceable Is a Low-Wage Job?
T2  - NBER working paper series
PY  - 2023///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
KW  - Labor Economics: General
KW  - jelc
KW  - Unemployment: Models, Duration, Incidence, and Job Search
N1  - July 2023; Hardcopy version available to institutional subscribers
N2  - 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
UR  - https://www.nber.org/papers/w31447
UR  - http://dx.doi.org/10.3386/w31447
ER  -