Job loss on labour market participation and work ability in Estonia
School of Business | Master's thesis
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AbstractThis thesis examines the impact of job loss on employment, unemployment and assessments of reduced work ability using Estonian nationwide administrative data from 2012 to 2022. It leverages information on the legal basis for employment contract termination to identify displacements likely due to collective redundancies. The immediate effect on annual days in employment is estimated to be approximately 90 days, comparable with previous results in the literature. However, the displaced recover remarkably well, with the effect converging to just over 10 days already a few years after job loss. The assessments of reduced work ability increase by 2.5 percentage points (30%) within few years after displacement. Finally, the comparison of the main results with those obtained using a sample criterion generally applied in the previous literature suggests that existing estimates for initial impact of job loss might biased downward.
Thesis advisorKeloharju, Matti
job loss, labor market participation, disability, employment