<p>Displaced workers often experience prolonged unemployment and substantial earning losses relative to their non-displaced counterparts. While prior research has largely focused on men, emerging evidence suggests that women may face more persistent and severe consequences following job loss. This paper examines the heterogeneity in the effects of job displacement on weekly earnings for women and analyzes gender disparities in the distribution of earning losses after involuntary job separation, using data from the Displaced Worker Survey (DWS) and the Current Population Survey (CPS) from 2014 to 2022. We document significant heterogeneity in the short-term earnings effects of job displacement among women, with 47% experiencing losses. To better understand these disparities, we apply a distributional decomposition framework to both the treatment effects and the logarithm of change in weekly earnings over time. Our results show that structural factors, differences in the returns to characteristics, explain most of the gender gap in the upper tail of the distribution, while compositional factors, differences in observable characteristics, are more influential in the lower tail. These findings underscore the importance of moving beyond average treatment effects to study the individual-level distribution of job displacement effects. Understanding the heterogeneity in earning losses can help policymakers design more effective, targeted interventions to address gender-specific vulnerabilities in labor market recovery.</p>

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Gender Disparities in Earning Losses after Job Displacement: A Distributional Decomposition Approach

  • Afrouz Azadikhah Jahromi,
  • Alina Malkova

摘要

Displaced workers often experience prolonged unemployment and substantial earning losses relative to their non-displaced counterparts. While prior research has largely focused on men, emerging evidence suggests that women may face more persistent and severe consequences following job loss. This paper examines the heterogeneity in the effects of job displacement on weekly earnings for women and analyzes gender disparities in the distribution of earning losses after involuntary job separation, using data from the Displaced Worker Survey (DWS) and the Current Population Survey (CPS) from 2014 to 2022. We document significant heterogeneity in the short-term earnings effects of job displacement among women, with 47% experiencing losses. To better understand these disparities, we apply a distributional decomposition framework to both the treatment effects and the logarithm of change in weekly earnings over time. Our results show that structural factors, differences in the returns to characteristics, explain most of the gender gap in the upper tail of the distribution, while compositional factors, differences in observable characteristics, are more influential in the lower tail. These findings underscore the importance of moving beyond average treatment effects to study the individual-level distribution of job displacement effects. Understanding the heterogeneity in earning losses can help policymakers design more effective, targeted interventions to address gender-specific vulnerabilities in labor market recovery.