Adam Smith Business School

Dr Ines Helm, University of Munich

"Displacement Effects in Manufacturing and Structural Change"
Wednesday, 18 October. 3 pm
Room 355 Gilbert Scott Building

Abstract

We investigate the consequences of structural change for workers displaced from the manufacturing sector. Manufacturing establishments traditionally employed low- and high-wage workers in similar proportions and paid substantial wage premiums to both types of workers. Structural change has led to the disappearance of these jobs, particularly for low-wage workers. Decomposing displacement wage losses, we show that low-wage workers suffer considerable losses in establishment premiums following displacement, whereas high-wage workers tend to fall down the match quality ladder. With ongoing structural change, losses in wages and establishment premiums have increased over time, especially for low-wage workers, in part because they are increasingly forced to switch to low-knowledge service jobs where establishment premiums are low. Our findings further highlight that structural change and layoffs in manufacturing have significantly contributed to job polarization and the rise in assortative matching of workers to firms.

Bio

Ines Helm is an Associate Professor in the Department of Economics at LMU Munich. She is also affiliated with the Centre for Economic Policy Research (CEPR), the CesIfo research network, and the Centre for Research and Analysis of Migration at UCL. Before joining LMU Munich, Ines worked as an assistant professor at Stockholm University. She earned her PhD in 2016 from University College London. Her main fields of interest are Applied and Labor Economics, with a particular focus on the economics of local labor markets.

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For further information, please contact business-school-research@glasgow.ac.uk

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First published: 4 October 2023