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The Gender Gap in Earnings Losses after Job Displacement

Author

Listed:
  • Hannah Illing

    (University of Bonn, IAB, IZA)

  • Johannes Schmieder

    (Boston University, NBER, and IZA)

  • Simon Trenkle

    (Institute of Labor Economics (IZA), IAB)

Abstract

We compare men and women who are displaced from similar jobs by applying an event study design combined with propensity score matching and reweighting to administrative data from Germany. After a mass layoff, women’s earnings losses are about 35% higher than men’s, with the gap persisting five years after displacement. This is partly explained by women taking up more part-time employment, but even women’s full-time wage losses are almost 50% higher than men’s. Parenthood magnifies the gender gap sharply. Finally, displaced women spend less time on job search and apply for lower-paid jobs, highlighting the importance of labor supply decisions.

Suggested Citation

  • Hannah Illing & Johannes Schmieder & Simon Trenkle, 2023. "The Gender Gap in Earnings Losses after Job Displacement," ECONtribute Discussion Papers Series 247, University of Bonn and University of Cologne, Germany.
    • Handle: RePEc:ajk:ajkdps:247
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    Cited by:

    1. Philippe, Arnaud & Skandalis, Daphné, 2023. "Motherhood and the Cost of Job Search," IZA Discussion Papers 16669, Institute of Labor Economics (IZA).
    2. Lochner, Benjamin & Merkl, Christian, 2022. "Gender-specific application behavior, matching, and the residual gender earnings gap," FAU Discussion Papers in Economics 04/2022, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    3. Ines Helm & Alice Kuegler & Uta Schoenberg, 2023. "Displacement Effects in Manufacturing and Structural Change," RF Berlin - CReAM Discussion Paper Series 2313, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    4. Mária Balgová & Hannah Illing, 2023. "Job Displacement and Migrant Labor Market Assimilation," CRC TR 224 Discussion Paper Series crctr224_2023_457, University of Bonn and University of Mannheim, Germany.
    5. Weber, Andrea & Bardits, Anna & Adamecz, Anna & Bisztray, Márta & Szabo-Morvai, Agnes, 2023. "Precautionary Fertility: Conceptions, Births, and Abortions around Employment Shocks," CEPR Discussion Papers 17988, C.E.P.R. Discussion Papers.
    6. Balgova, Maria & Illing, Hannah, 2023. "Job Displacement and Migrant Labor Market Assimilation," IZA Discussion Papers 16349, Institute of Labor Economics (IZA).
    7. Maria Balgova & Hannah Illing, 2023. "Job Displacement and Migrant Labor Market Assimilation," ECONtribute Discussion Papers Series 246, University of Bonn and University of Cologne, Germany.
    8. Ria Ivandic & Anne Sophie Lassen, 2023. "Gender Gaps From Labor Market Shocks," Upjohn Working Papers 23-387, W.E. Upjohn Institute for Employment Research.
    9. Koerner, Konstantin & Borrs, Linda & Eppelsheimer, Johann, 2023. "FDI and onshore job stability: Upgrades, downgrades, and separations in multinationals," European Economic Review, Elsevier, vol. 152(C).
    10. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," LSE Research Online Documents on Economics 119948, London School of Economics and Political Science, LSE Library.
    11. Illing, Hannah & Koch, Theresa, 2021. "Who Suffers the Greatest Loss? Costs of Job Displacement for Migrants and Natives," IAB-Discussion Paper 202108, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," Labour Economics, Elsevier, vol. 83(C).
    13. Mattis Beckmannshagen & Rick Glaubitz, 2023. "Is There a Desired Added Worker Effect?: Evidence from Involuntary Job Losses," SOEPpapers on Multidisciplinary Panel Data Research 1200, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Eloiza Regina Ferreira de Almeida & Renata Narita, 2024. "The gender difference in wage losses after leaving formal employment in Brazil," Working Papers, Department of Economics 2024_01, University of São Paulo (FEA-USP).

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    More about this item

    Keywords

    Job Displacement; Gender Wage Gap; Job Search;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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