Journal of Economic Perspectives: Vol. 12 No. 1 (Winter 1998)


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Job Displacement

Article Citation

Kletzer, Lori G. 1998. "Job Displacement." Journal of Economic Perspectives, 12(1): 115-136.

DOI: 10.1257/jep.12.1.115


The past decade and a half has seen tremendous research growth in the area of job displacement. This paper discusses the state of knowledge on the issues and questions of job loss. The 1984-96 Displaced Worker Surveys are used to describe how the characteristics of displacement are changing to include more college educated, white collar, and nonmanufacturing workers. For many workers, the long-term earnings losses following displacement are large due to the loss of firm-specific human capital. More research is needed on the questions of the causes of job displacement and on the efficacy of employment and training programs.

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Kletzer, Lori G. (U CA, Santa Cruz)

JEL Classifications

J63: Labor Turnover; Vacancies; Layoffs
O33: Technological Change: Choices and Consequences; Diffusion Processes
E24: Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital


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