The Gender Gap in Earnings Losses After Job Displacement

Author:

Illing Hannah1,Schmieder Johannes2,Trenkle Simon3

Affiliation:

1. University of Bonn and Institute for Employment Research (IAB) , Germany

2. Boston University , United States

3. Institute of Labor Economics (IZA) and Institute for Employment Research (IAB) , Germany

Abstract

Abstract We compare men and women who are displaced from similar jobs by applying an event 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 5 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.

Funder

Universiteit Utrecht

Deutsche Forschungsgemeinschaft

Publisher

Oxford University Press (OUP)

Reference55 articles.

1. Robust Post-Matching Inference.”;Abadie;Journal of the American Statistical Association,2022

2. High Wage Workers and High Wage Firms.”;Abowd;Econometrica,1999

3. Parenthood and the Gender Gap in Pay.”;Angelov;Journal of Labor Economics,2016

4. “Identifying Couples in Administrative Data for the Years 2001–2014.”;Bächmann,2021

5. “The Unequal Cost of Job Loss Across Countries.”;Bertheau;American Economic Review,2023

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