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The Gender Gap in Earnings Losses After Job Displacement

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  • Hannah Illing
  • Johannes Schmieder
  • Simon Trenkle

Abstract

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.

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  • Hannah Illing & Johannes Schmieder & Simon Trenkle, "undated". "The Gender Gap in Earnings Losses After Job Displacement," CRC TR 224 Discussion Paper Series crctr224_2022_381, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2022_381
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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. Connolly, Laura E. & Jolly, Nicholas A., 2024. "Temporal Changes to the Added Worker Effect Associated with Spousal Job Loss," GLO Discussion Paper Series 1454, Global Labor Organization (GLO).
    3. 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.
    4. Ria Ivandic & Anne Sophie Lassen, 2023. "Gender Gaps From Labor Market Shocks," Upjohn Working Papers 23-387, W.E. Upjohn Institute for Employment Research.
    5. 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).
    6. 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).
    7. Aitor Irastorza-Fadrique & Peter Levell & Matthias Parey, 2024. "Household responses to trade shocks," IFS Working Papers W24/52, Institute for Fiscal Studies.
    8. Hannah Illing & Hanna Schwank & Linh T. Tô, 2024. "Hiring and the Dynamics of the Gender Gap," ECONtribute Discussion Papers Series 339, University of Bonn and University of Cologne, Germany.
    9. 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.
    10. Anna Bárdits & Anna Adamecz & Márta Bisztray & Andrea Weber & Ágnes Szabó-Morvai, 2023. "Precautionary Fertility: Conceptions, Births, and Abortions around Employment Shocks," CERS-IE WORKING PAPERS 2303, Institute of Economics, Centre for Economic and Regional Studies.
    11. 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.
    12. Seema Jayachandran & Lea Nassal & Matthew Notowidigdo & Marie Paul & Heather Sarsons, 2024. "Moving to Opportunity, Together," Working Papers 326, Princeton University, Department of Economics, Center for Economic Policy Studies..
    13. 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].
    14. Ivandić, Ria & Lassen, Anne Sophie, 2023. "Gender gaps from labor market shocks," Labour Economics, Elsevier, vol. 83(C).
    15. Balgova, Maria & Illing, Hannah, 2023. "Job Displacement and Migrant Labor Market Assimilation," IZA Discussion Papers 16349, Institute of Labor Economics (IZA).
    16. 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).
    17. 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).
    18. 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.

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    More about this item

    Keywords

    Labor Supply; Labor Demand; Economics of Gender;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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