This paper analyzes the long-term wage losses of workers displaced due to firms’ privatization. We use a unique panel covering all major privatization events in the Portuguese banking industry. We present a critical assessment of the standard panel treatment evaluation procedure. When comparing workers with similar predisplacement characteristics we find evidence of small wage losses, mainly concentrated in female workers. Older (and more tenured) and less-educated workers suffered the most.

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We study the long-term impact of job displacement after a privatization experience in a developing country. Our results suggest large reductions in earnings, which persist throughout the years. However, we also find that the displaced worker’s current earnings are in line with competitive market wages, indicating that the long-term reduction in earnings as a result of displacement can be traced to the loss of wage rents.

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This paper uses new data that combines information on workers’ education and earnings trajectories with information about their firms to estimate the costs of job displacement in Brazil. We find that high-tenure workers displaced from their firms during mass lay-offs suffer a long-term loss in monthly wages of about 20% per year. We show that this result is driven by the losses suffered by more educated individuals working in big firms at the time of displacement.

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This study intends to measure the impact of labor reform through the only variable that theoretically does not have ambiguous effects: duration of unemployment. The study also analyzes the effects over the duration of employment. The approximation to the problem of measures is elaborated through the effects of labor rotation and the unemployment-employment-unemployment flows. We also explore the impact on different population groups using the triple differences estimator.

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While few economists object to the hypothesis that labor market regulation hinders the process of creative-destruction, its empirical support is limited. In this paper we revisit this hypothesis, using a new sectoral panel for 60 countries and a methodology suitable for such a panel. We find that job security regulation clearly hampers the creative-destruction process, especially in countries where regulations are likely to be enforced.

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This study estimates the effect of labor reform, on hourly wages and hours of work. To identify the parameter of interest, we estimate difference in difference models. We exploit the necessary conditions for the intervention to affect them, and define treatment and comparison group. The results we get would not be good new to male workers of industry; there are signals of increases in hourly wages for male workers of the other sectors of the economy that might bring good news in the short run.

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The model describes the effects of social contribution cuts skill-biased technical progress and the business cycle on the skilled and unskilled labour demands, capital and wage and price. We come up to several robust conclusions. The most important substitution effect implies skilled and unskilled employment. Unskilled labour seems to be sensitive to the business cycle and to the skilled-biased technical change. We come up to 150 000 unskilled jobs created by the social contribution cuts.

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