Abstract
Even accounting for cyclical changes there has been an apparent rise in the fraction of the labor force that has lost jobs because of plant closings. Among household heads in the Panel Study of Income Dynamics (PSID), only 1.6% reported themselves as having left their most recent job (been displaced) between 1974 and 1976, when the unemployment rate was 7.1%. Between 1979 and 1981, when the aggregate unemployment rate was 6.8%, 2.2% reported themselves as having been displaced because the plant closed. Roughly 2 1/2 million workers reported in the January 1984 Current Population Survey (CPS) that some time during the previous five years they had lost a job they had held for at least three years because the plant closed.1 Since the CPS tabulation excluded workers with less than three years of tenure, while the PSID included all workers, it is reasonable to conclude that around 1 million workers have lost jobs annually in recent years because their place of business closed.
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© 1987 Kluwer-Nijhoff Publishing, Boston
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Hamermesh, D.S., Cordes, J.J., Goldfarb, R.S. (1987). Compensating Displaced Workers—Why, How Much, How?. In: Chinloy, P.T., Stromsdorfer, E.W. (eds) Labor Market Adjustments in the Pacific Basin. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-3251-7_10
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DOI: https://doi.org/10.1007/978-94-009-3251-7_10
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