INTERINDUSTRY VARIATION IN THE COSTS OF JOB DISPLACEMENT

Job displacement entails a substantial wage reduction for most displac ed workers. We show that the mean reduction, the tenure profile of red uctions, and the experience profile of reductions all vary substantial ly across industries. We then link this interindustry variation to ana logous variation in firm size, unionization, wage levels, and the inci dence of employer-provided training. While these industry characterist ics explain some of the interindustry variation in mean wage reduction s, they do not explain variation in the tenure or experience profiles of wage reductions.