Data and Code for: Job Displacement and Earnings Losses: the Role of Joblessness

A large literature finds that workers displaced in mass layoffs experience persistentearnings losses. We find that the earnings penalty from job displacement is mediatedby the length of the jobless spell after displacement. Workers who experience little orno joblessness suffer no losses on average; those who experience a prolonged period ofjoblessness experience large, persistent earnings losses. Job movers who experiencejoblessness tend to move to lower paying firms, a phenomenon which informs ourunderstanding of the mechanisms that generate earnings losses. We also find thatjobless duration predicts earnings outcomes for separators generally, not only displacedworkers.