We are pleased to invite you to the seminar series on “Macroeconomics and Labor Markets“ organized by the Chair of Macroeconomics at the Friedrich-Alexander University Erlangen-Nuremberg, Prof. Merkl, the Chair of Global Governance and International Trade at the Friedrich-Alexander University Erlangen-Nuremberg, Prof. Moser, and the Competence Field Macroeconomics of the Institute for Employment Research (IAB). Researchers of both institutions, as well as national and international guests, present their current work at the intersection of labor- and macroeconomics.
The next seminar will be held on Tuesday, January 27, 12 noon to 1.30 PM (German time).
It will take place in person at the IAB, room E10 (Regensburger Str. 100, Nürnberg).
Online participation will be possible via Zoom.
Antoine Bertheau (Banque de France & Sciences Po, Paris) will talk about “The U-Shaped Cost of Job Loss”.
Abstract:
Job displacement causes large and lasting earnings losses. Challenging the common view that these losses increase monotonically with age, we document a clear U-shaped pattern in French administrative data: both young and older workers lose significantly more than those in mid-career. We identify distinct age-specific mechanisms behind this pattern. Young workers face prolonged job instability, whereas older workers encounter poor reemployment prospects and wage declines. We develop a search-and-matching model with human capital accumulation and obsolescence that reproduces these dynamics. For the young, displacement disrupts skill growth and traps them in high-turnover jobs; for the old, losses reflect an inability to redeploy human capital and firms’ reluctance to hire near retirement. While policy debates often emphasize older displaced workers, our findings highlight the need to also support displaced youth.