Occupational routine intensity and the costs of job loss

Abstract

"This paper examines if workers face larger costs from losing their job in a mass layoffwhether they were employed in routine-intensive occupations as technological change erodes their employment perspectives outside of their original job. We use worker-level data on mass layoffs in Germany between 1980 and 2010 and provide evidence that workers who were employed in more routine-intensive occupations indeed suffer larger and more persistent earnings losses. We find that earnings losses are primarily due to a reduction in the number of days in employment, suggesting that routine-intensive workers face considerable difficulties in coping with job loss. The additional displacement costs associated with routine intensity have increased over time." (Author's abstract, © Elsevier) ((en))

Cite article

Blien, U., Dauth, W. & Roth, D. (2021): Occupational routine intensity and the costs of job loss. Evidence from mass layoffs. In: Labour Economics, Vol. 68. DOI:10.1016/j.labeco.2020.101953