ABSTRACT
The aim of this study is to analyze economic insecurity caused by job loss. As indicated in the previous chapters, I apply three steps of analysis to fully explore this issue: first, analyses of the incidence of job loss and unemployment; second the analysis of consequences and buffering effects; and third the analysis of household strategies to offset the consequences. While the first step is of a descriptive nature, the other two steps aim to isolate the effect of job loss on economic well-being and other household members’ employment behavior under different circumstances. Thus, for the first step I need no special method beyond summary statistics. 12 However, for the second two steps, I need an empirical strategy that isolates the impact of displacements from other possible influences. One aim of this chapter is to describe this method. I rely on the counterfactual model of causal inference (Gangl 2010). Specifically, I use Difference-in-Difference (DiD) estimation with a matched control group. The matching of cases is achieved through Coarsened Exact Matching (CEM). I discuss the merits of this approach below.
