Job loss and earnings inequality: Distributional effects of formal re-employment in Chile

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dc.catalogadorjlo
dc.contributor.authorCarranza Navarrete, Rafael Ignacio
dc.contributor.authorPrieto, Joaquín
dc.contributor.authorSehnbruch, Kirsten
dc.date.accessioned2025-06-19T14:36:24Z
dc.date.available2025-06-19T14:36:24Z
dc.date.issued2025
dc.description.abstractThis 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.
dc.format.extent17 páginas
dc.fuente.origenWOS
dc.identifier.doi10.1016/j.eap.2025.02.021
dc.identifier.issn0313-5926
dc.identifier.urihttps://doi.org/10.1016/j.eap.2025.02.021
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/104699
dc.identifier.wosidWOS:001478530100001
dc.information.autorucEscuela de Gobierno; Carranza Navarrete, Rafael Ignacio; S/I; 1327884
dc.language.isoen
dc.nota.accesocontenido parcial
dc.pagina.final1036
dc.pagina.inicio1020
dc.revistaEconomic Analysis and Policy
dc.rightsacceso restringido
dc.subjectEarnings inequality
dc.subjectUnemployment
dc.subjectFormal employment
dc.subjectChile
dc.subjectDistributive analysis of job losses
dc.subjectWage losses
dc.subject.ddc300
dc.subject.deweyCiencias socialeses_ES
dc.titleJob loss and earnings inequality: Distributional effects of formal re-employment in Chile
dc.typeartículo
dc.volumen86
sipa.codpersvinculados1327884
sipa.trazabilidadWOS;2025-05-10
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