Abstract
Employment shocks can produce persistent earnings losses, yet it is unclear whether these losses result from changes in productivity or labor market frictions. I estimate the long-run effects of a change in job quality on earnings and productivity by exploiting discontinuities in the rules governing membership on professional golf tours. Despite estimating large initial earnings effects, I find that these treatment effects quickly dissipate. Furthermore, I find no productivity effects from treatment. High job transition rates suggest that hiring and firing frictions are weak in golf and, thus, employment shocks have less persistent consequences than in the broader labor market.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
