Survey on Income and Living Conditions for the years 2004-2013. The error terms are both correlated across equations and … longer employment and unemployment spells, they must contend with lower earnings than tenants upon reemployment. They also …

long-run loss is due to a decline in wages. We also show that even the generous German unemployment insurance system … lasting reductions in income even in labor markets with tighter social safety nets and lower earnings inequality. -- Job … Displacement ; Mass-Layoffs ; Unemployment Insurance System …