Southern European workers lose more than their jobs when they are laid off

By Edoardo Acabbi, Assistant Professor of Finance, Universidad Carlos III
Andreas Gulyas, Assistant Professor of Economics, University of Mannheim
Antoine Bertheau, Postdoc, University of Copenhagen
Cristina Barceló, Economista en la Dirección General de Economía y Estadística, Banco de España
Raffaele Saggio, Assistant Professor, University of British Columbia
Stefano Lombardi, Senior Researcher, PhD (Econ.), VATT Institute for Economic Research

Earnings of laid-off workers in southern Europe are 30% lower five years later, while in northern countries the decline is less than 10%. The differences are largely due to the likelihood of finding a new job.

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