Involuntary job loss in administrative data is commonly identified by focusing on mass-layoffs or plant closures. However, such events usually do not happen without prior knowledge, which potentially leads to selection in the labor turnover of distressed firms. We find that workers separating...

This study tests for the empirical relationship between layoffs and the economic performance of workers who remain after the layoffs. Previous studies performed in laboratory settings have often found increases in the efficiency of workers after layoffs. This analysis is the first to test for...