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Shifted labor market risks? The changing economic consequences of job loss in the United States and West Germany

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  • Ehlert, Martin

Abstract

This article analyzes how institutional changes in the welfare state influence income mobility around job loss in the United States andWest Germany. Drawing both on an analysis of changes in provisions for the unemployed and on panel data from the Panel Study of Income Dynamics (PSID) and the German Socio-Economic panel (GSOEP), I demonstrate that the material well-being of American households hit by job loss has decreased substantially over time because of welfare state retrenchment, while unemployed German households have experienced only little deterioration of their economic well-being despite worsening labor market circumstances and institutional changes. The analysis also reveals that women in the United States are especially disadvantaged by job loss because, in their case, the withdrawal of the state has not been counteracted by an increase in influence on the part of the family.

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  • Ehlert, Martin, 2011. "Shifted labor market risks? The changing economic consequences of job loss in the United States and West Germany," Discussion Papers, Research Unit: Inequality and Social Integration SP I 2011-205, Social Science Research Center Berlin (WZB).
  • Handle: RePEc:zbw:wzbisi:spi2011205
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    1. Timothy M. Smeeding, 2005. "Public Policy, Economic Inequality, and Poverty: The United States in Comparative Perspective," Social Science Quarterly, Southwestern Social Science Association, vol. 86(s1), pages 955-983.
    2. Marcel Erlinghagen, 2006. "Job Stability, Mobility and Labour Market Restructuring. Evidence from German Microdata," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 17(4), pages 372-394.
    3. Ron Haskins, 2004. "Welfare Reform: Success with Trouble Spots," Eastern Economic Journal, Eastern Economic Association, vol. 30(1), pages 125-133, Winter.
    4. Frick, Joachim R. & Jenkings, Stephen P. & Lillard, Dean R. & Lipps, Oliver & Wooden, Mark, 2007. "The Cross-National Equivalent File (CNEF) and Its Member Country Household Panel Studies," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 627-654.
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