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Effects of Job Displacement on Social Participation: Findings over the Life Course of a Cohort of Joiners

Publication Abstract

Download PDF versionBrand, Jennie, and Sarah Burgard. 2007. "Effects of Job Displacement on Social Participation: Findings over the Life Course of a Cohort of Joiners." PSC Research Report No. 07-623. 5 2007.

Career disorder and economic distress have been identified as potential causes of the observed decline in social participation in the U.S. We examine the causal effect of job displacement, a career disorder-producing event that is associated with subsequent socioeconomic and psychological decline, on social participation. Using more than 45 years of panel data from the Wisconsin Longitudinal Study and difference-in-differences regression estimation, we find significant and lasting negative effects of displacement on subsequent social participation for workers displaced during their prime earnings years, ages 35-53, while no effect for workers displaced in the years approaching retirement, ages 53-64. Results also suggest that socioeconomic and psychological decline resulting from job displacement do not explain the negative impact of job displacement on social participation.

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