RESEARCH IN BRIEF
AFTER GETTING A PINK SLIP, CONSIDER HITTING THE ROAD Unexpected job loss and moving are two of life’s most stressful events. But can moving after the loss of a job pay off in the long run? New research from Dr. Nicholas Jolly, assistant professor of economics, says yes. Unsurprisingly, being displaced from one’s job is associated with negative outcomes in the labor market, including reductions in hours spent working and increases in time spent unemployed, Jolly says. Additionally, displaced workers also suffer from substantial long-term earnings losses.
Dr. Nicholas Jolly
Assistant Professor, Economics
In a 2015 study published in B.E. Journal of Economic Analysis & Policy, Jolly, a labor economist, analyzed data collected between 1968 to 1997 from the University of Michigan’s Panel Study of Income Dynamics, which surveys households to collect longitudinal demographic and economic information, as well as data on location of residence and geographic migration. He found that one way workers can adapt to displacement is by migrating to another location.
“By geographically broadening the job search, workers increase the probability of finding re-employment quickly,” Jolly explains. “With more re-employment opportunities available, workers can be more selective when choosing their new job. All of this helps workers by reducing earnings losses, increasing hours worked and reducing time spent unemployed.” Studies like Jolly’s can have important public policy implications. The government has already put forth policies, such as Trade Adjustment Assistance, which over more than 40 years has assisted 2.2 million Americans, helping some to seek and find jobs outside of their normal commuting areas. The findings in his study, Jolly says, support the overarching principle behind this program and possibly similar programs in the future. Jolly is currently expanding his research on job displacement to include its effects on the ability of workers to maintain health insurance coverage. CHRISTOPHER STOLARSKI
marquette university discover 2017
“By geographically broadening the job search, workers increase the probability of finding re-employment quickly. With more re-employment opportunities available, workers can be more selective when choosing their new job.”
Discover Magazine 2017