Lori G. Kletzer's 'Job Displacement' (1998)

Couch and Placzek's 'Earnings Losses of Displaced Workers Revisited' (2010)

Jacobson, Lalonde, and Sullivan's 'Earnings Losses of Displaced Workers' (1993)

Rob Grey

The Grey Family: A Case Study of Labor Market Dynamics

A company that manufactures bicycles experiences stable consumer demand for its products. To increase production speed and reduce long-term costs, the company invests in an automated welding system. Subsequently, it permanently lays off its team of manual welders, as their specific roles have been rendered obsolete by the new technology. Which economic term most accurately describes the welders' loss of employment?

Technological Change in a Factory Town

Analyzing Economic Restructuring and Labor

Match each scenario of job loss with the most accurate description of its underlying cause. Each cause is used only once.

An automotive company temporarily lays off 20% of its assembly line workers due to a nationwide economic recession that has reduced consumer demand for new cars. The company has stated it intends to rehire these workers once the economy improves. This situation is a clear example of job displacement.

Defining Job Displacement

A manufacturing sector undergoes a significant transformation, leading to workers losing their jobs. Arrange the following events into the most logical causal sequence that illustrates this process of job displacement.

A country significantly reduces its import tariffs on furniture. Consequently, domestic furniture manufacturers, unable to compete with the lower-priced imports, permanently close several factories. Which statement best analyzes the situation for the laid-off factory workers?

A company replaces its specialized, custom-built manufacturing equipment with a new, standardized automated system. A highly-skilled, well-paid technician, whose expertise was specific to the old equipment, is laid off. Which statement best analyzes the technician's situation in the labor market?

Evaluating Re-employment Prospects for Displaced Workers