The impact of losing one’s job
Losing a job has always been understood as one of the most important causes of downward social mobility in modern societies. And it's only gotten worse in recent years, as the weakening position of workers has made re-entering the labour market even tougher. In his recently published book, his dissertation ‘The Impact of Losing Your Job’, Martin Ehlert, Research Fellow of the Research Unit Skill Formation and Labor Markets, shows the effects job loss on income, family life, and future prospects. Key to Ehlert's analysis is a comparative look at the United States and Germany that enables him to show how different approaches to welfare state policies can ameliorate the effects of job loss-but can at the same time make labour insecurity more common. Going beyond market and institutions Martin Ehlert has especially investigated how the family and the household influence the impact of job loss in the two welfare states.
Family has an important impact on the financial consequences of unemployment. Existing as well as additional incomes within the household may smooth income trajectories – the risk of becoming unemployed is therefore pooled within the household. However, not all families have additional potential earners. Singles and single parents are thus worse off after job losses than people in couple households. Furthermore, dual-earner couples are better protected than male-breadwinner couples.