The Distribution of Economic Losses among Displaced Workers: Measurement Methods Matter

This paper uses data on displaced workers from the January 1984 Displaced Worker Survey and data on a comparison group of "nondisplaced" workers constructed from the Current Population Survey to measure how worker characteristics affect the distribution of losses from displacement for workers displaced between January 1983 and January 1984. Displaced blue collar workers, industry changers, white women, and black men who are displaced incur the greater losses. Anomolous findings in previous studies are shown to be the result of failure to include a comparison group and to specify losses correctly.