Displacement and Occupational Mobility: Evidence from the Displaced Worker Surveys

This paper investigates the determinants of occupational mobility among displaced workers. Displaced workers whose expected post-displacement earnings are higher if they switch occupations are more likely to change occupation. Similarly, those who would fare better by staying in the old occupation are more likely to stay. In short, the process of occupational mobility accompanying involuntary separations does not seem to differ materially from that observed for quits. Furthermore, plant closings are associated with lesser occupational mobility than layoffs, pointing perhaps to better initial occupational matches within firms that closed.