Who buffers income losses after job displacement? The role of alternative income sources, the family, and the state

Eva Hank and Daniel Fackler

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: Using the SOEP this paper analyses to what extent alternative income sources, reactions within the household context, and redistribution by the state attenuate earnings losses of displaced workers. Applying propensity score matching and FE estimations, we find that income from self-employment slightly reduces the earnings gap, severance payments buffer losses in the short run. At the household level, there is no added worker effect, but taxes and transfers mitigate income losses substantially.

JEL-codes: D10 I38 J63 J65 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168098

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