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The Impact of Displacement on the Earnings of Workers in Ireland

Author

Listed:
  • Nóirín McCarthy

    (University College Cork)

  • Peter W. Wright

    (University of Sheffield)

Abstract
In this paper we estimate the earnings losses of displaced workers. We use a novel matched worker-firm dataset to estimate earnings losses associated with mass-layoff and closure events in Ireland. Using propensity score matching and difference-in-differences estimators, we find that in the year following displacement, workers who experience a mass-layoff incur losses of 77 per cent compared to losses of 46 per cent for those displaced following a closure, relative to earnings five periods prior to displacement. However, those who are re-employed immediately after displacement suffer much smaller losses of 36 per cent and 19 per cent in the mass-layoff and closure groups respectively. Those displaced in the 2008-2010 group suffer greater earnings losses than those displaced between 2005 and 2007.

Suggested Citation

  • Nóirín McCarthy & Peter W. Wright, 2018. "The Impact of Displacement on the Earnings of Workers in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 49(4), pages 373-417.
    • Handle: RePEc:eso:journl:v:49:y:2018:i:4:p:373-417
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    File URL: https://www.esr.ie/article/view/1029/200
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    References listed on IDEAS

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    Cited by:

    1. Laurence, James & Kelly, Elish & McGinnity, Frances & Curristan, Sarah, 2023. "Wages and working conditions of non-Irish nationals in Ireland," Research Series, Economic and Social Research Institute (ESRI), number JR2.

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    Keywords

    earnings; workers; Ireland;
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