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Understanding the Reallocation of Displaced Workers to Firms

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Abstract

We study job displacement in France. In the medium run, losses in firm-specific wage premium account for a substantial share of tthe overall cost of displacement. However, and despite the positive correlation between premium and productivity in the cross-section of firms, we find that workers are reemployed by high productivity, low labor share firms. The observed reallocation is therefore productivity-enhancing, yet costly for workers. We show that destination firms are less likely to conclude collective wage agreements and have lower participation rates at professional elections. Overall, our results point to a loss in bargaining power.
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Dates and versions

halshs-03082302 , version 1 (18-12-2020)
halshs-03082302 , version 2 (24-02-2022)

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  • HAL Id : halshs-03082302 , version 2

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Paul Brandily, Camille Hémet, Clément Malgouyres. Understanding the Reallocation of Displaced Workers to Firms. 2022. ⟨halshs-03082302v2⟩
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