Results of losing a job: above all employees dismissed from large-scale establishments must accept clear drops in wages

Abstract

"Closures of and mass dismissals by large-scale companies are often the subject of widespread public interest because of the consequences of these for the employees concerned. In actual fact, it is the case that the losses of pay of the employees concerned - consisting of a decrease in wages in new employment at a later date and because of gaps in employment - clearly increase with the size of the company undertaking the dismissals. This is mainly because employees dismissed from large-scale establishments - in contrast to those who lose their job in small establishments - have to accept distinct drops in wages because afterwards they are often employed in smaller establishments where the pay is lower. While it is true that employees dismissed from small establishments also suffer clear losses in wages, their losses in wages are lower. They can even improve their wages if they are lucky enough to find a job in a large-scale establishment." (Author's abstract, IAB-Doku)

Cite article

Fackler, D., Müller, S. & Stegmaier, J. (2018): Folgen von Arbeitsplatzverlusten: Vor allem aus Großbetrieben entlassene Arbeitnehmer müssen deutliche Lohneinbußen hinnehmen. In: Wirtschaft im Wandel, Vol. 24, No. 4, p. 59-62.