Wage Growth over Unemployment Spells
Abstract: This article looks at the wage growth associated with a spell of unemployment during the past three recessions. Our main findings are threefold. First, half of all unemployed workers experience a lower hourly wage once they regain employment. Second, afteran unemployment spell, older workers and those without a college degree experience lower wage growth. Third, workers who regain employment in a different industry than they were in previously tend to experience a substantial wage decline. The analysis suggests that the COVID-19 pandemic not only led to unprecedented job losses, but it could also result in sizable wage losses for a large fraction of unemployed workers as they return to employment.
File(s): File format is application/pdf https://www.frbatlanta.org/-/media/documents/research/publications/policy-hub/2020/07/13/wage-growth-%20over-unemployment-spells.pdf
Provider: Federal Reserve Bank of Atlanta
Part of Series: Policy Hub
Publication Date: 2020-07-13