Labor market experience and well-being after firm closure. Survey evidence on displaced manufacturing workers in Switzerland

This study examines how plant closure affected individuals' careers and lives about two years after they lost their job. We analyze the displaced workers' reemployment prospects and study for reemployed workers the characteristics of their new jobs in terms of reemployment sectors, wages, and job quality. Additionally, we inquire how workers' sociability and subjective well-being were affected by job loss. Our analysis is based on our own survey conducted in Switzerland in 2011. The survey included the workforce of five manufacturing companies that had closed down two years earlier. We addressed the risk of biases typically prevailing with observational data by complementing it with register data from the public unemployment insurance. Moreover, we use a control group based on matched data from the Swiss Household Panel. We find that workers experience strongly diverging outcomes after plant closure: on the one hand, high proportions of the workers experience a smooth transition after plant closure. More than two-thirds of the workers returned to employment, more than half of them within less than six months. With respect to their social lives, we find that positive changes in relationships with their spouse, family and friends are more frequent than negative changes. On the other hand, for a small group of workers plant closure had a detrimental effect. Close to twenty percent remained unemployed. About ten percent of the workers were long-term unemployed and subsequently often were reemployed in jobs of lower quality. Unemployed workers and workers who dropped out of the labor force were particularly prone to find their subjective well-being decreasing. The most vulnerable subgroup in our study were workers over 55. This result stands in striking contrast to a large body of literature that considers labor market institutions to be primarily biased against young workers. Our findings show that older workers not only take longer to find a job but are also less likely to return to employment. Moreover, if they manage to find a job, they experience the severest cuts in wages and job quality of all cohorts. From a life-course perspective this result is remarkable since it shows that workers are not protected from hardship in their late careers. In light of the current demographic changes this finding may have important policy implications. -- Cette étude analyse l'impact des fermetures d'entreprises sur les travailleurs licenciés. Plus précisément, nous examinons les chances de réinsertion des travailleurs dans le marché du travail et - pour ceux qui l'ont fait avec succès - dans quels secteurs, pour quels salaires et avec quelle qualité d'emploi ils sont réengagés. Nous nous intéressons également aux répercussions engendrées par la perte de l'emploi sur la sociabilité et le bien-être subjectif des travailleurs concernés. Notre analyse se base sur les données d'une enquête que nous avons menée en 2011. Cette enquête cible le personnel de cinq entreprises industrielles suisses qui avaient fermé leurs portes deux ans auparavant. Pour dépasser les biais typiques liés aux données d'observation, nous utilisons en complément des données administratives issues de l'assurance chômage publique. De plus, nous utilisons un groupe de contrôle basé sur des données appariées provenant du Panel Suisse de Ménage. Nos analyses montrent des résultats fortement contrastés. D'un côté, la majeure partie des travailleurs ont vécu une transition professionnelle plutôt facile : plus des deux tiers des personnes ont retrouvé un travail et parmi elles plus de la moitié en moins de six mois. Par rapport aux relations sociales, tant avec leur partenaire, qu'avec les membres de leur famille et leurs amis, les changements expérimentés étaient plus fréquemment positifs que négatifs. De l'autre côté, cependant, pour une petite partie de travailleurs la fermeture de leur entreprise a eu des conséquences très négatives sur leur carrière et leur bien-être. Au moment de notre enquête, presque vingt pourcents des travailleurs étaient au chômage. Les personnes au chômage et celles qui avaient quitté le marché du travail ont été particulièrement affectées par une diminution de leur bien-être subjectif. Les plus vulnérables parmi les travailleurs licenciés étaient ceux qui étaient âgés de plus de 55 ans. Notre analyse montre que les travailleurs âgés ont beaucoup moins fréquemment retrouvé un travail. Pour les personnes de plus de 55 ans qui ont tout de même retrouvé un emploi, la réinsertion a durée plus longtemps, les pertes de salaire étaient plus conséquentes et la diminution de la qualité de l'emploi plus grande que pour les autres cohortes. Au vu des changements démographiques actuels, ce résultat interpellant peut avoir des implications politiques importantes.

Monthly wages in the Swiss Household Panel

This paper describes the construction of monthly income from employment and self employment in the Swiss Household Panel (SHP). It documents the assumptions that have to be taken and addresses possibilities and difficulties when relating monthly income variables with the number of working hours. Finally, some descriptive statistics of the monthly wages are provided from 1999 to 2008. These show a high correlation of wages across the years, which is higher than correlation from yearly wages. This underlies the suitability of these variables on monthly wages for labour market research with the SHP. Median and average hourly wages have increased slightly from 2002 to 2008. The inequality of wages has remained stable for the total population.

Effects of different Incentives on Attrition and Fieldwork Effort in Telephone Household Panel Surveys

Little is known about sample behavior and fieldwork effects of different incentives introduced in a household panel survey. This is especially true for telephone surveys. In a randomized experiment, the Swiss Household Panel implemented one prepaid and two promised nonmonetary incentives in the range of 10 to 15 Swiss Francs (7-10 e), plus a no incentive control group. The aim of the paper is to compare effects of these incentives especially on cooperation, but also on sample selection and fieldwork effort, separated by the household and the subsequent individual level. We find small positive cooperation effects of the prepaid incentive on both the household and the individual level especially in larger households. Sample composition is affected to a very minor extent. Finally, incentives tend to save fieldwork time and partially the number of contacts needed on the individual level.

Nonclassical measurement error with applications to labor and development issues

Zero correlation between measurement error and model error has been assumed in existing panel data models dealing specifically with measurement error. We extend this literature and propose a simple model where one regressor is mismeasured, allowing the measurement error to correlate with model error. Zero correlation between measurement error and model error is a special case in our model where correlated measurement error equals zero. We ask two research questions. First, we wonder if the correlated measurement error can be identified in the context of panel data. Second, we wonder if classical instrumental variables in panel data need to be adjusted when correlation between measurement error and model error cannot be ignored. Under some regularity conditions the answer is yes to both questions. We then propose a two-step estimation corresponding to the two questions. The first step estimates correlated measurement error from a reverse regression; and the second step estimates usual coefficients of interest using adjusted instruments.

Fonctions du plancher pelvien: de la phase expulsive à la consultation du post-partum [Pelvic floor functions: from the beginning of the second phase of labor to the postpartum consultation].

Vaginal delivery can cause lesions of the various pelvic structures responsible for the mechanisms of continence. These lesions may perhaps be prevented in the future by measuring pressure generated during childbirth. Tear of the anal sphincter during childbirth is a marker of a global impairment of the urinary, ano-rectal and sexual pelvic functions in the short and medium term. Persistence of a defect of the anal sphincter is frequent in spite of immediate suture. The correlation between these defects and ano-rectal incontinence are not established in our experience. The quality of the contraction of the sphincter complex and pubo-rectal sling seems to play a more important role in ano-rectal continence after a traumatic childbirth.

Attrition in the Swiss Household Panel: Is change associated with later drop-out?

This study examines the importance of change in characteristics and circumstances of households and household members for contact and cooperation patterns. The literature suggests that there might be an underrepresentation of change in panel studies, because respondents facing more changes would be more likely to drop out. We approach this problem by analysing whether previous changes are predictive of later attrition or temporary drop-out, using eleven waves of the Swiss Household Panel (1999-2009). Our analyses support previous findings to some extent. Changes in household composition, employment status and social involvement as well as moving are associated mainly with attrition and less with temporary drop-out. These changes affect obtaining cooperation rather than obtaining contact, and tend to increase attrition.

Attrition in the Swiss Household Panel

In this paper, we analyze magnitude and possible selectivity of attrition in first wave respondents in the Swiss Household Panel (SHP), from wave two (2000) through wave seven (2005). After comparing attrition of first wave respondents with that of other panel surveys, we proceed to model selectivity of attrition in two steps: we first build separate waveto- wave models, and second a longitudinal all-wave model. The latter model includes wave interaction effects. The first models allow for tracing of selectivity development, i.e. whether an initial selectivity might compensate or cumulates over time, the second to assessing the effects of the covariates in a specific wave, controlling for the base attrition effect. In particular it allows for the analysis of consequences due to discrete fieldwork events. Our results support the findings in the literature: attritors are in general the younger people and the males, foreigners, the socially and politically "excluded", i.e. those who show little social and political interest and participation, those who are mostly dissatisfied with various aspects in their life, and those who live in households with high unit nonresponse, and who exhibit a worse reporting behavior. This pattern is rather cumulative than compensating over panel waves. Excessive attrition in two waves presumably caused by two discrete events in the panel is not particularly selective. Still existing variation in selective attrition is worth to be further explored.

Does Interviewer-Respondent Socio-Demographic Matching Increase Cooperation in Centralized CATI Household Panels?

Overall it seems that age and gender interviewer characteristics are relevant in achieving higher cooperation rates by telephone panel members. This appears to be the case especially for older male interviewers, who perform the best on gaining cooperation across different types of respondents. This holds if important interviewer covariates like experience are controlled for. There is no evidence that special sex age or sex matches yield a higher cooperation. It may be that not only the perceived authority of the institution that sponsors the survey plays a role when it comes to cooperation (Groves et al., 1992) but also of the interviewer who asks for this cooperation. Presumably older men have more authority to convince sample members to participate. A simple recommendation is to use as many older male interviewers as possible for the recruitment phase. It is likely that this strategy would also be successful in other western cultures than Switzerland.

Cooperation in centralised CATI Household Panel Surveys : A Contact-based Multilevel Analysis to Examine Interviewer, Respondent, and Fieldwork Process Effects

In this research, we analyse the contact-specific mean of the final cooperation probability, distinguishing on the one hand between contacts with household reference persons and with other eligible household members, and on the other hand between first and later contacts. Data comes from two Swiss Household Panel surveys. The interviewer-specific variance is higher for first contacts, especially in the case of the reference person. For later contacts with the reference person, the contact-specific variance dominates. This means that interaction effects and situational factors are decisive. The contact number has negative effects on the performance of contacts with the reference person, positive in the case of other persons. Also time elapsed since the previous contact has negative effects in the case of reference persons. The result of the previous contact has strong effects, especially in the case of the reference person. These findings call for a quick completion of the household grid questionnaire, assigning the best interviewers to conducting the first contact. While obtaining refusals has negative effects, obtaining other contact results has only weak effects on the interviewer's subsequent contact outcome. Using the same interviewer for contacts has no positive effects.

Genetic compatibility affects division of labor in the argentine ant linepithema humile.

Division of labor is central to the organization of insect societies. Within-colony comparisons between subfamilies of workers (patrilines or matrilines) revealed genetic effects on division of labor in many social insect species. Although this has been taken as evidence for additive genetic effects on division of labor, it has never been experimentally tested. To determine the relative roles of additive and nonadditive genetic effects (e.g., genetic compatibility, epistasis, and parent-of-origin imprinting effects) on worker behavior, we performed controlled crosses using the Argentine ant Linepithema humile. Three of the measured behaviors (the efficiency to collect pupae, the foraging propensity, and the distance between non-brood-tenders and brood) were affected by the maternal genetic background and the two others (the efficiency to feed larvae and the distance between brood-tenders and brood) by the paternal genetic background. Moreover, there were significant interactions between the maternal and paternal genetic backgrounds for three of the five behaviors. These results are most consistent with parent-of-origin and genetic compatibility effects on division of labor. The finding of nonadditive genetic effects is in strong contrast with the current view and has important consequences for our understanding of division of labor in insect societies.

Subjective health assessments and active labor market participation of older men: evidence from a semiparametric binary choice model with nonadditive correlated individual-specific effects

We use panel data from the U. S. Health and Retirement Study, 1992-2002, to estimate the effect of self-assessed health limitations on the active labor market participation of older men. Self-assessments of health are likely to be endogenous to labor supply due to justification bias and individual-specific heterogeneity in subjective evaluations. We address both concerns. We propose a semiparametric binary choice procedure that incorporates nonadditive correlated individual-specific effects. Our estimation strategy identifies and estimates the average partial effects of health and functioning on labor market participation. The results indicate that poor health plays a major role in labor market exit decisions.

Attrition in the Swiss Household Panel: Is change associated with drop-out?

This study examines the importance of change in characteristics and circumstances ofhouseholds and household members for contact and cooperation patterns. The literaturesuggests that there might be an underrepresentation of change in panel studies, becauserespondents facing more changes would be more likely to drop out. We approach this problemby analysing whether previous changes are predictive of later attrition or temporary drop-out,using eleven waves of the Swiss Household Panel (1999-2009). Our analyses supportprevious findings to some extent. Changes in household composition, employment status andsocial involvement as well as moving are associated mainly with attrition and less withtemporary drop-out. These changes affect obtaining cooperation rather than obtaining contact,and tend to increase attrition.