Schmieder, Johannes; Wachter, Till von; Heining, Jörg - National Bureau of Economic Research - 2022
We document the sources behind the costs of job loss over the business cycle using administrative data from Germany … downturns. A large part of the long-term earnings losses and their cyclicality is driven by declines in wages. Key to these long …-paying firms. Changes in characteristics of workers or displacing firms explain little of the cyclicality, though non-employment …