Changes in the Age and Education Profile of Displacement

Changes in the Age and Education Profile of Displacement
Author(s): Rodriguez, Daniel and Zavodny, Madeline
Year: 2001
Paper Number: GBS-OM-2001-003
Goizueta Department: Organization and Management

Abstract

Using data from the Displaced Workers Surveys, this paper examines changes in the probability of displacement by age between the periods 1983-87 and 1993-97. The likelihood that middle-aged and older workers experienced an involuntary job loss rose relative to younger workers. Potential explanations for this shift include changes in education attainment, changes in the relationship between education and displacement, and industry shifts that had adverse effects on older workers relative to younger workers. Our results suggest that changes in the relationship between education and displacement may have contributed to the rise in displacement among middle-aged workers, with the relative increase in displacement of these workers concentrated among those with education beyond high school. The probability of displacement increased significantly for workers in service-related industries across all age groups.