Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145101
Authors: 
Fackler, Daniel
Hank, Eva
Year of Publication: 
2016
Series/Report no.: 
IWH Discussion Papers 28/2016
Abstract: 
Using survey data from the German Socio-Economic Panel (SOEP), this paper analyses to what extent alternative income sources, reactions within the household context, and redistribution by the state attenuate earnings losses after job displacement. Applying propensity score matching and fixed effects estimations, we find high individual earnings losses after job displacement and only limited convergence. Income from selfemployment slightly reduces the earnings gap and severance payments buffer losses in the short run. On the household level, we find substantial and rather persistent losses in per capita labour income. We do not find that increased labour supply by other household members contributes to the compensation of the income losses. Most importantly, our results show that redistribution within the tax and transfer system substantially mitigates income losses of displaced workers both in the short and the long run whereas other channels contribute only little.
Subjects: 
job displacement
plant closure
household income
SOEP
JEL: 
D10
I38
J63
J65
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.