24.09 – Kraks Fond Seminar

ORSA KEKEZI: LABOUR MARKET POOLING AND JOB OUTCOMES OF DISPLACED WORKERS

 

DATE AND LOCATION

Date: 24/9
Time: 14:00 – 15:00
Location: Frederiksholms Kanal 30, Fæstningens Materialgård 1220 København K

Orsa Kekezi, PhD Candidate in Economics, Jönköping International Business School

 

Labor Market Pooling and Job Outcomes of Displaced Workers

Abstract:

This paper hypothesizes that labor market pooling is a mechanism that facilitates better matching in the labor market after job loss. While the theoretical arguments to its importance go back to Marshall (1920), empirical evidence on the topic is scarce. This paper studies how labor market pooling affects the job outcomes of displaced workers. Labor market pooling is calculated as regional concentrations of employment in related industries and related occupations. Using matched employer-employee data for displaced workers between 2003-2009 in Sweden, the results show that labor market pooling facilitates the process of finding a job after displacement. Moreover, it increases the probability that the new job matches the industry- and occupation-specific skills of the displaced workers. The empirical estimations also indicate that working in regions where there is a large pool of related occupations, increases the probability of workers getting a higher-skilled job than before. Along the lines of previous literature, this paper as well shows that concentrations of related industries decrease the odds of workers migrating from the region.