@TechReport{iza:izadps:dp17496, author={Balgova, Maria and Illing, Hannah}, title={The Labor Market Costs of Job Displacement by Migrant Status}, year={2024}, month={Dec}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={17496}, url={https://www.iza.org/index.php/publications/dp17496}, abstract={This paper examines the differential impact of job displacement on migrants and natives. Using administrative data for Germany from 1997-2016, we identify mass layoffs and estimate the trajectory of earnings and employment of observationally similar migrants and natives displaced from the same establishment. Despite similar pre-layoff careers, migrants lose an additional 9% of their earnings in the first 5 years after displacement. This gap arises from both lower re-employment probabilities and post-layoff wages and is not driven by selective return migration. Key mechanisms include sorting into lower-quality firms and depending on lower-quality coworker networks during job search.}, keywords={immigration;job displacement;job search}, }