Does migration pay? Earnings effects of geographic mobility following job displacement

It has been well established that involuntary job displacement has strong negative effects on earnings. Utilising a large dataset, containing all workers in Sweden who were involuntarily displaced from work through closures or substantial cutbacks occurring in 1987 or 1988, this paper studies whether migration helps mitigate these negative effects. Substantial gender differences in earnings effects of internal migration are found: men generally have positive effects, while the consequences for women are negative.