Displacement Effects in Manufacturing by Ines Helm

Join us for the latest Applied Economics Research Seminar Series event, Spring Term 2022.

Ines Helm from the Department of Economics at LMU Munich will present Displacement Effects in Manufacturing

Abstract 

In this paper, we investigate wage losses from displacement in the manufacturing sector. We start by documenting that manufacturing firms traditionally employed low- and high-wage workers in similar proportions and paid substantial wage premiums to both types of workers. Over time, manufacturing jobs disappeared disproportionally, particularly so for low-wage workers. We find that even though low- and high-wage workers suffer similar wage losses upon displacement on average, low-wage workers experience substantially larger losses in their establishment wage premiums. Wage losses and losses in establishment wage premiums have increased over time especially for low-wage workers. We show that these differences can in part be explained by low-wage workers becoming more and more likely to be re-employed in low knowledge service jobs where firms pay low-wage premiums. 

The seminar will begin with a presentation and will end with a Q and A session.

It will be held on zoom at 1pm on Thursday 24th March. This event is open to all levels of study and is also open to the public. To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Applied Economics Research Seminar Series.