The long-term earnings losses of displaced workers are substantial. We investigate the role of post-displacement occupational matching in explaining the cost of job displacement. We combine German administrative data on the work history of displaced workers with information on the task content...

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...

The objective of this paper is to construct and quantitatively assess an equilibrium search model with on-the-job search and general human capital accumulation. In the model workers enter the labour market with different abilities and firms differ in their productivities. Wages are dispersed...