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Understanding the Reallocation of Displaced Workers to Firms

Abstract : We study job displacement in France. In the medium run, losses in firm-specific wage premium account for a substantial share of tthe overall cost of displacement. However, and despite the positive correlation between premium and productivity in the cross-section of firms, we find that workers are reemployed by high productivity, low labor share firms. The observed reallocation is therefore productivity-enhancing, yet costly for workers. We show that destination firms are less likely to conclude collective wage agreements and have lower participation rates at professional elections. Overall, our results point to a loss in bargaining power.
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Preprints, Working Papers, ...
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https://halshs.archives-ouvertes.fr/halshs-03082302
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Submitted on : Thursday, February 24, 2022 - 10:41:18 AM
Last modification on : Friday, April 29, 2022 - 10:13:24 AM

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WP_202082_va_2.pdf
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  • HAL Id : halshs-03082302, version 2

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Paul Brandily, Camille Hémet, Clément Malgouyres. Understanding the Reallocation of Displaced Workers to Firms. 2022. ⟨halshs-03082302v2⟩

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