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Earnings Losses and Unemployment of Displaced Workers in Germany

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  • Kenneth A. Couch

Abstract

Data from the German Socio-Economic Panel are used to examine the experiences of German workers following job displacement due to plant closure. In the year of displacement, annual earnings declined by about 13.5%, and the typical worker experienced between 6 and 10 additional days of annual unemployment. Two years later, annual earnings were only 6.5% less than before displacement, and the largest estimated increase in annual unemployment was 4 days. These estimated effects lie near the lower end of the range of similar estimates for U.S. workers.

Suggested Citation

  • Kenneth A. Couch, 2001. "Earnings Losses and Unemployment of Displaced Workers in Germany," ILR Review, Cornell University, ILR School, vol. 54(3), pages 559-572, April.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:3:p:559-572
    DOI: 10.1177/001979390105400301
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