Published2018
Labour Market Effects of Job Displacement for Prime-Age and Older Workers
Anja Deelen, Marloes de Graaf-Zijl, Wiljan van den Berge
IZA Journal of Labor Economics 7(3)
Abstract
We study the effects of firm closures associated with bankruptcies on the employment and wages of displaced prime-age and older workers, using Dutch administrative data for 2000–2011. Displacement lowers the probability of being in work and reduces wages in the new job, with larger effects for older workers than for prime-age workers.
Main findings
- Displacement lowers the probability of being in work and reduces wages in the new job.
- The adverse effects are larger for older workers than for prime-age workers.