Year: 2022
Type: report
Abstract: We estimate how exogenous worker exits affect firms' demand for incumbent workers and new hires.Drawing on administrative data from Germany, we analyze 34,000 unexpected worker deaths, which, on average, raise the remaining workers' wages and retention probabilities.The average effect masks substantial heterogeneity: Coworkers in the same occupation as the deceased see positive wage effects; coworkers in other occupations experience wage decreases when a high-skilled or specialized worker dies.Our findings imply substantial replacement costs, which are larger in thin markets and when skills are specialized.
DOI: 10.3386/w30629
Authors: Simon Jäger, Jörg Heining
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3204004723