Losing Work, Moving Away? Regional Mobility after Job Loss

32 Pages Posted: 2 Sep 2016

See all articles by Daniel Fackler

Daniel Fackler

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - Department of Economics

Lisa Rippe

Halle Institute for Economic Research

Date Written: August 2016

Abstract

Using German survey data, we investigate the relationship between involuntary job loss and regional mobility. Our results show that job loss has a strong positive effect on the propensity to relocate. We also analyze whether the high and persistent earnings losses of displaced workers can in part be explained by limited regional mobility. Applying an event study approach, which controls for worker fixed effects, our findings do not support this conjecture as we find substantial long lasting earnings losses for both movers and stayers. In the short run, movers even face slightly higher losses, but the differences between the two groups of displaced workers are never statistically significant. This challenges whether migration is a beneficial strategy in case of involuntary job loss.

Keywords: job displacement, plant closure, regional mobility, earnings, SOEP

JEL Classification: J61, J63

Suggested Citation

Fackler, Daniel and Rippe, Lisa, Losing Work, Moving Away? Regional Mobility after Job Loss (August 2016). SOEPpaper No. 861, Available at SSRN: https://ssrn.com/abstract=2833267 or http://dx.doi.org/10.2139/ssrn.2833267

Daniel Fackler (Contact Author)

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - Department of Economics ( email )

Lange Gasse 20
Nuernberg, D-90403
Germany

Lisa Rippe

Halle Institute for Economic Research ( email )

P.O. Box 11 03 61
Kleine Maerkerstrasse 8
D-06017 Halle, 06108
Germany

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