BPEA | 1993: Microeconomics 1

The Incidence and Costs of Job Loss: 1982-91

Henry S. Farber
Henry S. Farber Princeton University
John Pencavel and
John Pencavel Stanford University
Robert Hall
Robert Hall Headshot
Robert Hall Robert and Carole McNeil Senior Fellow - Hoover Institution, Professor of Economics - Stanford University

Microeconomics 1, 1993

THERE IS A PUBLIC PERCEPTION that the nature and consequences of job loss, defined here as the involuntary (from the worker’s viewpoint) termination of employment with a particular firm, have changed qualitatively in recent years. The perception is that highly skilled whitecollar workers and workers with more tenure (time with their current employer) are becoming increasingly vulnerable to job loss, reduced subsequent earnings, and prolonged unemployment. My goal in this study is to investigate whether and how the incidence and costs of job loss have changed in the last ten years. In other words, is the public perception correct?