Earnings Losses and Unemployment of Displaced Workers in Germany

2001/04/01 by Kenneth A. Couch · 1 citation
Health Professions · Economics, Econometrics and Finance · Social Sciences · #Employment and Welfare Studies #Labor market dynamics and wage inequality #Migration and Labor Dynamics

paper · doi:10.1177/001979390105400301

Abstract

Data from the German Socio-Economic Panel are used to examine the experiences of German workers following job displacement due to plant closure. In the year of displacement, annual earnings declined by about 13.5%, and the typical worker experienced between 6 and 10 additional days of annual unemployment. Two years later, annual earnings were only 6.5% less than before displacement, and the largest estimated increase in annual unemployment was 4 days. These estimated effects lie near the lower end of the range of similar estimates for U.S. workers.

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• The Firm’s Role in Displaced Workers’ Earnings Losses

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