Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250694 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15033
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We document the consequences of losing a job across countries using a harmonized research design. 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 accounts for 40% to 95% of within-country wage declines. The use of active labor market policies predicts a significant portion of the cross-country heterogeneity in earnings losses.
Subjects: 
job loss costs
wage dynamics
labor turnover
layoffs
labor market institutions
cross-country matched employer–employee dataset
JEL: 
J30
J63
J64
Document Type: 
Working Paper

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