Long-run wage and earnings losses of displaced workers

Displacement-related losses are estimated using National Longitudinal Survey of Youth data that span the years 1979-2000. The typical displaced worker faces losses of $34 065 during the period 4 years prior through 5 years following displacement. Proportionally, this represents a 10.8% loss compared to earnings of similar nondisplaced workers over the period. Considerable variation in losses is reported across worker types. Union, male and more mature workers suffer greater losses, respectively, than do their nonunion, female and younger counterparts. College graduates and high school dropouts are found to suffer lower losses compared to high school diploma holders and those who completed some college.