@article{Sector-Specific:1323,
      recid = {1323},
      author = {Joshaghani, Hosein},
      title = {Sector-Specific Human Capital and the Effects of Job  Displacement},
      publisher = {The University of Chicago},
      school = {Ph.D.},
      address = {2017-06},
      pages = {84},
      abstract = {Job loss has a permanent negative effect on life-time  earnings and, in general, on labor market outcomes of  workers. This negative effect is larger if job loss happens  in recession than the case of job loss during expansion. In  this paper, using linked employer--employee data of Germany  from 1975 to 2014, I show that about $55\%$ of the  variation in earning loss is accounted for by negative  sectoral performance. Intuitively, earning losses  associated with job loss are greater during recessions,  because the average displaced worker in a recession comes  from an industry with poor performance relative to the  average industry which makes sector-specific skills less  valuable. In other words, recessions are not only periods  of more job loss but also periods with more sectors of very  poor performance. Hence, workers displaced in recessions  are, on average, more likely to struggle with lack of  demand for their skills.  

By building a model of  sector-specific human capital, it is shown how loss of  sector-specific human capital can explain huge and  persistent earning and wage loss of displaced workers. In  addition, it is shown that concentration of displaced  workers in severely declining sectors during recessions is  a potential explanation for larger earning loss in  recessions than job-losses in expansions.},
      url = {http://knowledge.uchicago.edu/record/1323},
      doi = {https://doi.org/10.6082/uchicago.1323},
}