The unequal consequences of job loss across countries

Published: 18 May 2022
Author: Edoardo Acabbi, And Cristina Barcelo, And Antoine Bertheau, And Andreas Gulyas, And Stefano Lombardi, And Raffaele Saggio, And

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.

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IFAU working paper 2022:10 is written by Antoine Bertheau - University of Copenhagen, Edoardo Acabbi - Universidad Carlos III de Madrid, Cristina Barceló - Banco de España, Andreas Gulyas - University of Mannheim, Stefano Lombardi - (VATT) Institute for economic research Helsinki, and Raffaele Saggio - University of British Columbia. For further information, please contact Stefano Lombardi at e-mail: stefano.lombardi@vatt.fi