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Journal Article

Don't look down: the consequences of job loss in a flexible labour market


Publication date

Jan 2019


We estimate the earnings, hours and income effects of job loss for a representative sample of UK workers from 1991 to 2007. We follow workers before and after job loss, regardless of their labour market state, and we match displaced workers with similar non‐displaced workers. This provides a more comprehensive picture of the effect of job loss in the UK than previously available. Job loss causes a long‐run reduction in income that is due mainly to reductions in monthly pay rather than in employment propensity. Income from other labour market states and from welfare payments does little to compensate for income losses. This lack of a ‘safety net’ means that job loss in the UK has a similar impact to job loss in the USA.

Published in


Volume and page numbers

86 , 166 -200





Labour Economics, Unemployment, Income Dynamics, and Wages And Earnings


University of Essex, Albert Sloman Library Periodicals *restricted to University of Essex registered users* -

Related publications

  1. Don’t look down: new evidence on job loss in a flexible labour market

    Richard Upward and Peter Wright

    1. Labour Economics
    2. Unemployment
    3. Income Dynamics
    4. Wages And Earnings


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