Arbeitspapier

Understanding the Reallocation of Displaced Workers to Firms

We study job displacement in France. In the medium run, losses in firm-specific wage premium account for a substantial share of the overall cost of displacement. However, and despite the positive correlation between premium and productivity in the cross-section of firms, we find that workers are reemployed by high productivity, low labor share firms. The observed reallocation is therefore productivity-enhancing, yet costly for workers. We show that destination firms are less likely to conclude collective wage agreements and have lower participation rates at professional elections. Overall, our results point to a loss in bargaining power.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 15105

Classification
Wirtschaft
Labor Turnover; Vacancies; Layoffs
Wage Level and Structure; Wage Differentials
Subject
displaced workers
wage
reallocation
productivity
labor share

Event
Geistige Schöpfung
(who)
Brandily, Paul
Hémet, Camille
Malgouyres, Clément
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2022

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Brandily, Paul
  • Hémet, Camille
  • Malgouyres, Clément
  • Institute of Labor Economics (IZA)

Time of origin

  • 2022

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