Earnings losses following job change in Japan: Evidence from a job placement firm

Abstract

The costs of job displacement are examined on a sample of Japanese workers successfully provided job placement services from 2000 to 2003, a period of economic stagnation and structural change in Japan. We find that displaced workers suffer a loss of approximately $1,100 for each additional year of age. Workers also incur a large penalty when they change industries after being displaced. The age–earnings loss relationship is consistent with the operation of a delayed compensation scheme in large firms.

Citation

Bognanno, M. and Delgado, L. (2008), "Earnings losses following job change in Japan: Evidence from a job placement firm", Polachek, S.W. and Tatsiramos, K. (Ed.) Work, Earnings and Other Aspects of the Employment Relation (Research in Labor Economics, Vol. 28), Emerald Group Publishing Limited, Leeds, pp. 225-250. https://doi.org/10.1016/S0147-9121(08)28007-6