Replication Code for The Costs of Job Displacement over the Business Cycle and Its Sources: Evidence from Germany

Replication Code for The Costs of Job Displacement over the Business Cycle and Its Sources: Evidence from Germany <br> We document the sources behind the costs of job loss over the busi- ness cycle using administrative data from Germany. Losses in annual earnings after displacement are large, persistent, and highly cyclical, nearly doubling in size during downturns. A large part of the long-term earnings losses and their cyclicality is driven by declines in wages. Key to these long-lasting wage declines and their cyclicality are changes in employer characteristics, as displaced workers switch to lower-paying firms. Changes in characteristics of workers or displacing firms explain little of the cyclicality, though nonemployment durations correlated with losses in employer effects play a role. <br>