From the UConn Advance:
For workers losing jobs due to mass layoffs in the current economic downturn, the bad news is that more people than ever are looking for work right now, making it the toughest job market in at least two decades.
But for those lucky enough to find another job, there is more bad news: they will likely suffer lower wages for many years compared to similar workers who are not laid off.
A new study (pdf) from UConn and the Connecticut Department of Labor shows how the business cycle plays a determining role in the extent of wage losses for workers let go in mass layoffs and plant closings.
The study finds that for workers losing jobs during a recession, the damage to their earnings can linger for years. By contrast, for workers who lose jobs as part of a mass layoff or plant closure in more favorable times, long-term earnings losses are negligible.
Kenneth Couch (IDEAS), an associate professor of economics in the College of Liberal Arts and Sciences, teamed up with researchers at the Connecticut Department of Labor, economist Nicholas Jolly (MA, PhD) and analyst Dana Placzek, for the study.
Read more in the UConn Advance