Job loss on labour market participation and work ability in Estonia

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Journal Title
Journal ISSN
Volume Title
School of Business | Master's thesis
Date
2023
Major/Subject
Mcode
Degree programme
Economics
Language
en
Pages
46+10
Series
Abstract
This 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.
Description
Thesis advisor
Keloharju, Matti
Keywords
job loss, labor market participation, disability, employment
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