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Beyond Lost Earnings: The Long-Term Impact of Job Displacement on Workers’ Commuting Behavior

Author

Listed:
  • Duan, Yige

    (University of British Columbia)

  • Jost, Oskar

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Jost, Ramona

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract
"We study the long-term impact of job displacement on workers’ commuting behavior. Our measures of commuting exploit geo-coordinates of workers’ places of residence and places of work, from which we calculate the door-to-door commuting distance and commuting time. Using German employee-employer matched data and an event study design, we identify the causal effect of job loss on workers displaced during a mass layoff. Conditional on finding a new job, workers’ commuting distance and commuting time rise sharply after displacement and gradually decline in subsequent years. The recovery is due to employer changes rather than migration, and a larger increase in commuting would mitigate the wage loss due to job displacement. To rationalize our findings, we build an on-the-job search model with heterogeneous firm productivity and commuting distances. Our model predicts a joint recovery of wages and commuting despite a static tradeoff between the two attributes." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Duan, Yige & Jost, Oskar & Jost, Ramona, 2022. "Beyond Lost Earnings: The Long-Term Impact of Job Displacement on Workers’ Commuting Behavior," IAB-Discussion Paper 202215, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202215
    DOI: 10.48720/IAB.DP.2215
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    References listed on IDEAS

    as
    1. Dauth, Wolfgang & Eppelsheimer, Johann, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages 1-10.
    2. Aaron Flaaen & Matthew D. Shapiro & Isaac Sorkin, 2019. "Reconsidering the Consequences of Worker Displacements: Firm versus Worker Perspective," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(2), pages 193-227, April.
    3. Daniel Fackler & Steffen Mueller & Jens Stegmaier, 2021. "Explaining Wage Losses After Job Displacement: Employer Size and Lost Firm Wage Premiums," Journal of the European Economic Association, European Economic Association, vol. 19(5), pages 2695-2736.
    4. Dauth, Wolfgang & Eppelsheimer, Johann, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages .10(1-10).
    5. Blien, Uwe & Dauth, Wolfgang & Roth, Duncan H.W., 2021. "Occupational routine intensity and the costs of job loss: evidence from mass layoffs," Labour Economics, Elsevier, vol. 68(C).
    6. Alan Manning & Barbara Petrongolo, 2017. "How Local Are Labor Markets? Evidence from a Spatial Job Search Model," American Economic Review, American Economic Association, vol. 107(10), pages 2877-2907, October.
    7. Daniel Fackler & Lisa Rippe, 2017. "Losing Work, Moving Away? Regional Mobility After Job Loss," LABOUR, CEIS, vol. 31(4), pages 457-479, December.
    8. Simon Franklin, 2018. "Location, Search Costs and Youth Unemployment: Experimental Evidence from Transport Subsidies," Economic Journal, Royal Economic Society, vol. 128(614), pages 2353-2379, September.
    9. repec:iab:iabjlr:v:54:i:1:p:art.10 is not listed on IDEAS
    10. Dauth, Wolfgang & Haller, Peter, 2020. "Is there loss aversion in the trade-off between wages and commuting distances?," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    11. Valentin Verdier, 2020. "Average treatment effects for stayers with correlated random coefficient models of panel data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 917-939, November.
    12. Wyatt Brooks & Kevin Donovan, 2020. "Eliminating Uncertainty in Market Access: The Impact of New Bridges in Rural Nicaragua," Econometrica, Econometric Society, vol. 88(5), pages 1965-1997, September.
    13. Meekes, Jordy & Hassink, Wolter H.J., 2019. "The role of the housing market in workers′ resilience to job displacement after firm bankruptcy," Journal of Urban Economics, Elsevier, vol. 109(C), pages 41-65.
    14. Wolfgang Dauth & Johann Eppelsheimer, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis: a guide," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-14, December.
    15. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-188, January.
    16. Tazhitdinova, Alisa, 2020. "Do only tax incentives matter? Labor supply and demand responses to an unusually large and salient tax break," Journal of Public Economics, Elsevier, vol. 184(C).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Oskar Jost & Holger Seibert, 2022. "Homeoffice spart ein Zehntel Treibstoff ein [Home Office Saves a Tenth of Fuel]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(7), pages 540-544, July.

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; Auswirkungen ; Einkommenseffekte ; Erwerbsverhalten ; IAB-Betriebs-Historik-Panel ; Integrierte Erwerbsbiografien ; Pendelwanderung ; Pendler ; regionale Faktoren ; regionale Mobilität ; Arbeitsort ; Wohnort ; Arbeitsplatzverlust ; Arbeitsuche ; 2000-2017;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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