Scandinavian Working Papers in Economics
Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy
No 2022:10: The unequal consequences of job loss across countries
Edoardo Acabbi, Cristina Barcelo, Antoine Bertheau, Andreas Gulyas, Stefano Lombardi () and Raffaele Saggio
Additional contact information
Edoardo Acabbi: Universidad Carlos III de Madrid,, Postal: Universidad Carlos III de Madrid,, Spain
Cristina Barcelo: Banco de España, Postal: Banco de España, Spain
Antoine Bertheau: University of Copenhagen., Postal: University of Copenhagen.
Andreas Gulyas: University of Mannheim, Postal: University of Mannheim
Stefano Lombardi: Institute for economic research, VATT, Postal: Institute for economic research, VATT, Helsinki, Finland
Raffaele Saggio: University of British Columbia, Postal: University of British Columbia
Abstract: We document the consequences of losing a job across countries using a harmonized research design applied to seven matched employer-employee datasets. Workers in Denmark and Sweden experience the lowest earnings declines following job displacement, while workers in Italy, Spain, and Portugal experience losses three times as high. French and Austrian workers face earnings losses somewhere in between. Key to these differences is that Southern European workers are less likely to find employment following displacement. Loss of employer specific wage premiums explains a substantial portion of wage losses in all countries.
Keywords: Job loss Effects; Wage dynamics; Labor turnover; Mass Layoffs
Language: English
63 pages, May 18, 2022
Full text files
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