• Journal of Labour Economics
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• v.33 no.1
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• pp.53-84
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• 2010

This paper investigates the wage losses of displaced workers, using data from the Korean Labor & Income Panel Study. Previous Korean studies were only to estimate the wage losses shortly after job displacement. However, if the wage losses persist, those results seem to under-estimate the effects of displacement. Our findings show that the wage reductions are quite persistent 4 years after displacement. And much of this persistence can be explained by the lost labor market experience (lost opportunities to accumulate generalized skills) and additional job losses in the years following an initial displacement.