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The Costs of Job Displacement over the Business Cycle and Its Sources: Evidence from Germany

Johannes Schmieder, Till von Wachter and Jörg Heining ()
Additional contact information
Till von Wachter: University of California, Los Angeles ; NBER ; CEPR ; IZA
Jörg Heining: Institute for Employment Research (IAB), Nuremberg, Germany

No 202220, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "We document the sources behind the costs of job loss over the business cycle using administrative data from Germany. Losses in annual earnings after displacement are large, persistent, and highly cyclical, nearly doubling in size during downturns. A large part of the long-term earnings losses and their cyclicality is driven by declines in wages. Key to these long-lasting wage declines and their cyclicality are changes in employer characteristics, as displaced workers switch to lower-paying firms. Changes in characteristics of workers or displacing firms explain little of the cyclicality, though nonemployment durations correlated with losses in employer effects play a role." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; IAB-Open-Access-Publikation; Auswirkungen; berufliche Reintegration; Dequalifizierung; Einkommenseffekte; Entlassungen; Konjunkturabhängigkeit; Lohnentwicklung; Massenentlassungen; Rezession; Arbeitslose; 1975-2009 (search for similar items in EconPapers)
JEL-codes: J23 J24 J6 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2022-08-09
New Economics Papers: this item is included in nep-bec
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https://doi.org/10.48720/IAB.DP.2220

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Working Paper: The Costs of Job Displacement over the Business Cycle and Its Sources: Evidence from Germany (2022) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:202220

DOI: 10.48720/IAB.DP.2220

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