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Earnings Losses and Unemployment of Displaced Workers in Germany

Kenneth A. Couch
Industrial and Labor Relations Review
Vol. 54, No. 3 (Apr., 2001), pp. 559-572
Published by: Sage Publications, Inc.
DOI: 10.2307/2695989
Stable URL: http://www.jstor.org/stable/2695989
Page Count: 14
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Earnings Losses and Unemployment of Displaced Workers in Germany
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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.

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