Recent research by Prof. Kenneth Couch, previously presented on this blog has been featured today in an article of the Wall Street Journal. This work, written with Nicholas Jolly (MA, PhD) and Dana Placzek, shows that workers who have lost their jobs in mass layoffs suffer from significant wage losses in subsequent jobs, losses that can persist for years. The immediate drop amounts to 18% on average in a recession, leading to significant reductions in household welfare.

This story has subsequently been picked up by CNN.

---