Browsing by Author "Sehnbruch, Kirsten"

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    Job loss and earnings inequality: Distributional effects of formal re-employment in Chile
    (2025) Carranza Navarrete, Rafael Ignacio; Prieto, Joaquín; Sehnbruch, Kirsten
    This paper examines the impact of job losses on the subsequent earnings of formal workers in Chile using administrative data. It contributes to the literature by examining the impact of job losses across the earnings distribution using unconditional quantile regression analysis. The paper thus provides evidence on the costs of losing a formal job in an emerging economy that is now considered 'high-income' but still suffers from high earnings inequality and other issues that characterise labour markets in developing countries, such as high job rotation. Our results show that, on average, wages decline by 42 % in the first month after an involuntary job loss and never fully recover their previous level within our observation period of 3 years after this loss. Workers in the bottom 10 per cent of the earnings distribution experience greater wage losses after unemployment and take longer than average to recover. Conversely, those in the top 5 per cent experience little or no wage loss and even increase their wages over time. By having a more pronounced effect at the bottom of the earnings distribution, our findings suggest that involuntary job losses reinforce earnings inequality in the Chilean labour market.
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    Private Pension Systems Built on Precarious Foundations: A Cohort Study of Labor-Force Trajectories in Chile
    (SAGE Publications, 2019) Madero Cabib, Ignacio; Biehl Lundberg, Andrés; Sehnbruch, Kirsten; Calvo Bralic, Esteban; Bertranou, Fabio
    The success of private pension systems to provide old-age security is mainly a function of continuous individual pension contributions linked to formal employment. Using a rich longitudinal dataset from Chile and employing sequence analysis, this study examines the pension contribution histories and formal employment pathways of a cohort of individuals who began their working lives simultaneously to the introduction of the Chilean private pension system in the early 1980s, which pioneered private-oriented pension reforms worldwide. Results show that more than half of the individuals from this cohort developed labor-force trajectories inconsistent with continuous pension contributions and formal employment, which particularly affects women and lower educated people. We conclude that policy and decision makers focused on aging topics should be aware of the increasing diversity and precariousness of labor-force trajectories when evaluating the performance and sustainability of both private and public pension regimes.