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
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 15105
- Classification
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Wirtschaft
Labor Turnover; Vacancies; Layoffs
Wage Level and Structure; Wage Differentials
- Subject
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displaced workers
wage
reallocation
productivity
labor share
- Event
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Geistige Schöpfung
- (who)
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Brandily, Paul
Hémet, Camille
Malgouyres, Clément
- Event
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Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
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2022
- Handle
- Last update
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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