Published Date
18-Aug-25
Publication
VoxEU
Type
Decades of research have confirmed that job displacement causes significant and persistent earnings losses. This column presents new evidence from workers displaced during firm closures in West Germany between 2000 and 2005 which suggests that these losses are in fact much more heterogeneous than previously documented, and that the large average losses documented in previous work are heavily influenced by a minority of workers who experience catastrophic earnings declines.
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