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Economic Perspectives, Vol. 29, 2nd, No. 2, May 2005
Bringing together policymakers, researchers, and practitioners to discuss job loss
The most recent Displaced Workers Survey (DWS) finds that 5.3 million workers were displaced between January 2001 and December 2003 from jobs that they had held for three or more years. These workers are of particular interest for several reasons. First, due to the design of the DWS, we know that they are workers who likely lost their jobs through no fault of their own. Second, they have proven through their long association with their employers that they are good employees. Third, research has demonstrated that they are unlikely to get new jobs that are similar to their old jobs—particularly if they lost their old jobs because of technological change or international trade. Fourth, research has also shown that these workers are likely to suffer long-term earnings losses due to their job loss. This is particularly true in cases where the workers had built up skills that were specific to a particular job and where they are unlikely to be reemployed in a similar job.
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