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The Gender Gap in Earnings Losses After Job Displacement

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  • Hannah Illing
  • Johannes Schmieder
  • Simon Trenkle

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 5 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, 2024. "The Gender Gap in Earnings Losses After Job Displacement," Journal of the European Economic Association, European Economic Association, vol. 22(5), pages 2108-2147.
    • Handle: RePEc:oup:jeurec:v:22:y:2024:i:5:p:2108-2147.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvae019
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