Duration of Joblessness Following Displacement

This paper examines the duration of joblessness for workers displaced from full‐time nonagricultural jobs between 1979 and 1981. Although nearly one‐half of these workers found jobs within 14 weeks of displacement, many experienced very long spells of joblessness. A Weibull model of jobless spell duration is estimated that identifies demographic characteristics and labor market conditions significantly affecting the expected duration of joblessness. The results indicate that many displaced workers become structurally unemployed.