RUI: Industrial and Occupational Mobility following Job Displacement

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Since the late 1970's, increasing international competition, technological change, a deep recession, and changes in the composition of demand haver led to the displacement of millions of workers from their jobs because of plant closings or large-scale reductions in operations. The adaptability of displaced workers, is an important component of the economy's overall response to structural change. The purpose of this project is to analyze the determinants of industrial and occupational mobility and post- displacement joblessness and earnings. Differences between blacks and whites in industrial and occupational mobility will also be examined. The study will analyze job search with a two sector model which will be estimated using data from the Displaced Worker Surveys. Questions of industrial and occupational change introduce sample selection issues and these concerns will be addressed in the empirical analysis. This research is supported under the Research at Undergraduate Institutions Program, and the project is important because it may provide new insights for the design of labor market policies.