Earnings Losses of Displaced Workers with Stable Labour Market Attachment: Recent Evidence from Canada

This study examines long-term earnings losses of workers laid off during the early 1990s and the early 2000s using data from Statistics Canada's Longitudinal Worker File (LWF). In contrast to earlier studies, many of which focused on narrowly defined samples, this study compares earnings losses across all groups of displaced workers with stable labour market attachment prior to layoff. The study shows that focusing solely on high-seniority laid-off workers or workers laid off in firm closures leads to the exclusion of at least two-thirds of Canadian displaced workers with stable labour market attachment.