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Returns to migration after job loss – The importance of job match
Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
Department of Human Geography and Spatial Planning, Utrecht University, Netherlands.
2021 (English)In: Environment and planning A, ISSN 0308-518X, E-ISSN 1472-3409, Vol. 53, no 6, p. 1565-1587Article in journal (Refereed) Published
Abstract [en]

Loss of specific human capital is often identified as a mechanism through which displaced workers might experience permanent drops in earnings after job loss. Research has shown that displaced workers who migrate out of their region of origin have lower earnings than those who do not. This paper extends the discussion on returns to migration by accounting for the type of jobs people get and how related they are to their skills. Using an endogenous treatment model to control for selection bias in migration and career change, we compare displaced stayers with displaced movers in Sweden. Results show that migrants who get a job that matches their occupation- and industry-specific skills display the highest earnings among all displaced workers. If migration is combined with a job mismatch, earning losses are instead observed. This group experiences the lowest earnings among all displaced workers.

Place, publisher, year, edition, pages
Sage Publications, 2021. Vol. 53, no 6, p. 1565-1587
Keywords [en]
Inter-regional migration, specific human capital, job match, skill relatedness, displaced workers
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-48402DOI: 10.1177/0308518X211004577ISI: 000635322700001Scopus ID: 2-s2.0-85103152760Local ID: HOA;intsam;1430564OAI: oai:DiVA.org:hj-48402DiVA, id: diva2:1430564
Available from: 2020-05-15 Created: 2020-05-15 Last updated: 2021-12-19Bibliographically approved
In thesis
1. Labor mobility across jobs and space
Open this publication in new window or tab >>Labor mobility across jobs and space
2020 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of one introductory chapter and four independent papers. Each paper looks at different aspects of labor mobility, especially focusing on the transferability of specific human capital and the role of space for job matching.

The focus of the first paper is to examine how diversity of previous work experience of employees in creative industries matters for labor productivity. I further distinguish between related vs. unrelated occupation and industry experience to better understand how they matter for knowledge flows within a firm. The results show that diversity, and especially relatedness of previous occupational experience, are positively related to labor productivity.

In the second paper, I study how co-location of knowledge-intensive business services influences the innovative capacity of the sector. The results suggest that co-location facilitates labor mobility and thereby knowledge flows as well as innovation capacity across firms.

In the third and fourth papers, the focus shifts from the firm to the individual. The third paper examines how regional characteristics, especially Marshallian labor market pooling, influence the type of employment obtained after job displacement. The results show that regional industrial and occupational structures are crucial for facilitating job matches and occupational upgrades of individuals. The fourth paper examines whether there are wage returns to migration after job displacement, after the job match is considered. The results indicate that returns to migration are positive only when combined with a re-employment that matches the skills of the worker.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, Jönköping International Business School, 2020. p. 35
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 138
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-48404 (URN)978-91-7914-001-4 (ISBN)
Public defence
2020-06-09, Zoom webinar and in B1014, Jönköping International Business School, Jönköping, 15:00 (English)
Opponent
Supervisors
Available from: 2020-05-15 Created: 2020-05-15 Last updated: 2020-05-15Bibliographically approved

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Kekezi, Orsa

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