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Impact of Job Loss on Earnings Across Different Countries

ByThe Short Paper

The Unequal Consequences of Job Loss across Countries

This study analyzed the effects of job loss in various countries using a consistent research approach with seven employer-employee datasets. Workers in Denmark and Sweden had the smallest earnings reduction after losing their jobs, whereas those in Italy, Spain, and Portugal experienced earnings losses three times greater. French and Austrian workers fell somewhere in between. The primary factor behind these variations was the lower likelihood of southern European workers finding new employment after job displacement. The loss of employer-specific wage advantages played a significant role in wage reductions across all countries.

Bertheau, Antoine, Edoardo Maria Acabbi, Cristina Barceló, Andreas Gulyas, Stefano Lombardi, and Raffaele Saggio. 2023. “The Unequal Consequences of Job Loss across Countries.” American Economic Review: Insights, 5 (3): 393-408.

https://www.aeaweb.org/articles?id=10.1257/aeri.20220006

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