Louis S. Jacobson - The costs of worker dislocation

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title	:	The Costs of Worker Dislocation
author	:	Jacobson, Louis S.; Lalonde, Robert John.; Sullivan, Daniel Gerard
publisher	:	Upjohn Institute
isbn10 | asin	:	0880991445
print isbn13	:	9780880991445
ebook isbn13	:	9780585282992
language	:	English
subject	Displaced workers--Pennsylvania--Economic conditions.
publication date	:	1993
lcc	:	HD5708.55P44 1993eb
ddc	:	331.13
subject	:	Displaced workers--Pennsylvania--Economic conditions.

Page i The Costs of Worker Dislocation Louis Jacobson Robert LaLonde Daniel Sullivan 1993

Page ii Library of Congress Cataloging-in-Publication Data Jacobson, Louis S. The costs of workers dislocation / Louis S. Jacobson, Robert J. LaLonde, Daniel G. Sullivan. p. cm. Includes bibliographical references and index. ISBN 0-88099-144-5,ISBN 0-88099-143-7 (pbk.) 1. Displaced workersPennsylvaniaEconomic conditions. I. LaLonde, Robert II. Sullivan, Daniel.. III. Title. HD5708.55.U62P44 1993 331.13'73'09748dc20 93-23613 CIP Copyright 1993 W.E. Upjohn Institute for Employment Research 300 S. Westnedge Avenue Kalamazoo, Michigan 49007-4686 The facts presented in this study and the observations and viewpoints expressed are the sole responsibility of the author. They do not necessarily represent positions of the W.E. Upjohn Institute for Employment Research. Cover design by J.R. Underhill. Index prepared by Shirley Kessel. Printed in the United States of America.

Page iii Acknowledgments We thank the Pennsylvania Department of Labor and Industry for providing the data used in this monograph and for technical assistance. We also appreciate the research support provided by the Allegheny County Department of Planning, the Graduate School of Business at the University of Chicago, the W. E. Upjohn Institute for Employment Research, and the Industrial Relations Section at Princeton University. The views expressed herein are not necessarily those of the Federal Reserve Bank of Chicago or the Federal Reserve System. We have benefited from helpful comments by Joseph Altonji, David Card, Matthew Cunningham, Robert Gibbons, John Ham, Daniel Hamermesh, James Heckman, Bruce Meyer, Canice Prendergast, Christopher Ruhm, Jeffrey Smith, Robert Topel, and seminar participants at the University of Chicago, the W. E. Upjohn Institute for Employment Research, Princeton University, the University of Illinois, the Federal Reserve Bank of Chicago, the National Bureau of Economic Research, the Board of Governors of the Federal Reserve System, the University of Pittsburgh, the University of Iowa, Texas A & M University, and Johns Hopkins University. We also thank Melissa Barnhart and Carolyn Thies for excellent research assistance. Finally and most importantly, we thank our families for their patience and support while this monograph was being prepared.

Page iv Authors Louis S. Jacobson, a senior economist at Westat Incorporated, was formerly a senior economist at the W. E. Upjohn Institute. He received his Ph.D. from Northwestern University. Dr. Jacobson's research has focused on the nature and consequences of changes in the structure of employment and the effectiveness of compensation mechanisms such as the Trade Adjustment Assistance program. He has also studied the effectiveness of the Employment Service as an aid to displaced workers. Robert J. LaLonde is associate professor of industrial relations at the Graduate School of Business of the University of Chicago. He served previously as a senior staff economist for the Council of Economic Advisers. Dr. LaLonde received his Ph.D. from Princeton University. His previous research has been on the evaluation of training programs, the employment effects of unions and reasons for decline in unionization rates, and immigration (rates of assimilation and effects on native workers). Daniel G. Sullivan, a senior research economist and research officer with the Federal Reserve Bank of Chicago, received his Ph.D. in economics from Princeton University. He is also a visiting scholar with the Center for Urban Affairs and Policy Research at Northwestern University. In addition to his research on displaced workers, he has published articles on the effect of subsidized training programs on participant employment rates, the labor market for professional nurses, and the cigarette industry.

Page v Contents 1 Introduction 1 1.1 Policies to Aid Displaced Workers 2 1.2 Why Job Loss May Be Costly in the Long Run 3 1.3 This Study's Objectives and Findings 5 Notes 8 2 Evidence from Earlier Studies of the Costs of Worker Dislocation 11 2.1 Lessons From Case Studies

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