12 de diciembre: Matías Tapia, Banco Central de Chile

Paper: Sudden firm closures and displaced workers.

Expositor: Matías Tapia, Banco Central de Chile
Fecha: Miércoles 12 de diciembre de 2018
Hora: 13:00 horas a 14:00 horas.
Lugar: Avda. Santa Clara N° 797,
Campus Ciudad Empresarial,
Sala C-302 – Edificio Cubo


Using administrative tax records for Chile, we estimate the wage and employment costs of job displacement. Similarly to previous literature, our identification strategy uses displacement events associated to massive layoffs. However, we refine this identification strategy by focusing on sudden firm closures. In those episodes, employment in a given firm was not decreasing prior to its closure. We show that estimated effects of displacement under this definition are significantly larger than the ones found using the traditional identification strategy. This is consistent with the idea that these layoffs might be unexpected, and thus workers were unable to prepare for the event- for example, by doing on the job search or through buffer stock saving.  The paper also characterize the dynamics of firm closures, and how they relate to changes in the composition of workers within the firm.