The Costs of Job Loss and Task Usage: Do Social Tasks Soften the Drop?


Do different tasks shield differently from the scarring effects of job loss? This study examines how the effects of job loss depend on task usage. We use Finnish linked employer–employee data from 2001 to 2016, representative survey data on task usage, and plant closures to identify individualswho involuntarily lose their jobs.We find that heterogeneity in the cost of job loss is linked to task usage.Workers inmore social taskintensive origin jobs have smaller employment and earnings losses, whereas workers in routine jobs face larger wage losses. The probability of being employed is 8.3 pp higher (3.9 pp lower) per one standard deviation higher than mean social (routine) task usage 1 year after the job loss event.We also find that workers with longer tenure face larger losses and that task usage contributes more to their losses. The results show that the costs of job loss depend on task usage in the origin job. Public policy measures should be targeted at employees in routine-intensive jobs, since they face the largest losses.

Empirical Economics (2024).

Julkaisun tietoja

Tuloksia tutkimuksesta
Polkuja työhön: ammattirakenteen muutos haastaa osaamisen
Työmarkkinat ja koulutus
Job loss, Earnings loss, Linked employer–employee data, Specific human capital, Task usage
J62, J65, J31, J24
Julkaisija / sarja
Empirical Economics (2024)
Julkaisu ladattavissa