Determinants of postdisplacement reemployment outcomes and occupation changes

We investigate the roles played by agglomeration (proxied by population density) and occupational distribution on postdisplacement employment outcomes for US workers, focusing on the probability of being employed, the likelihood of changing occupations, and the occupational distance between the old and new occupations (where occupational distance is defined as the difference in job tasks between two occupations). Overall, we find that the local occupational distribution has a greater impact on our outcome variables compared with our agglomeration measure. Our findings suggest policy makers should look closely at occupational distribution when designing job training programs and proposals for relocation vouchers.