Supplementary data for: "Understanding the Scarring Effect of Recessions"

ABSTRACT: This paper documents that the earnings cost of job loss is concentrated
among workers who find reemployment in lower-skill occupations, and that
the cost and incidence of such occupation displacement is higher for
workers who lose their job during a recession. I propose a model where
hiring is endogenously more selective during recessions, leading some
unemployed workers to optimally search for reemployment in lower-skill
jobs. The model accounts for existing estimates of the size and
cyclicality of the present value cost of job loss, and the cost of
entering the labor market during a recession.<br>