Template-type: ReDIF-Paper 1.0
Author-Name: Martins-Neto, Antonio
Author-Email: martinsneto@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Cirera, Xavier
Author-Email: xcirera@worldbank.org
Author-Workplace-Name: World Bank
Author-Name: Coad, Alex
Author-Email: alex.coad@waseda.jp
Author-Workplace-Name: Waseda Business School, Waseda University
Title: Routine-biased technological change and employee outcomes after mass layoffs: 
	 Evidence from Brazil
Abstract: We investigate the impact of "routinization" on the labor outcomes of
	 displaced workers. We use a rich Brazilian panel dataset and an
	 occupation-task mapping to examine the effect of job displacement in
	 different groups, classified according to their tasks. Our main result
	 is that following a layoff, workers previously employed in
	 routine-intensive occupations suffer a more significant decline in wages
	 and more extended periods of unemployment. As expected, job displacement
	 has a negative and lasting impact on wages. Still, workers in
	 routine-intensive occupations are more impacted than those in
	 non-routine occupations in terms of wages (an increase of one point in
	 the routineintensity index results in a further decline of 2 percent in
	 workers' relative wages) and employment. Furthermore, our results
	 indicate that workers in routine-intensive occupations are more likely
	 to change occupations after the shock, and those who do not switch
	 occupational fields suffer a more significant decline in wages. Lastly,
	 even though the loss of employer-specific wage premiums explains 13
	 percent of displaced workers' drop in wages, it does not explain
	 routine-intensive workers' more substantial losses. 
Classification-JEL: J24, J63, O31, O33, O54
Keywords: Technological change, innovation, Routine intensity, Job displacement,
	 Mass layoffs, Occupational mobility, Brazil 
Series: UNU-MERIT Working Papers
Creation-Date: 20220419
Number: 2022-014
File-URL: https://unu-merit.nl/publications/wppdf/2022/wp2022-014.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2022014