Age significantly impacts earnings losses after unemployment, affecting financial stability long-term.
Earnings losses increase with age after unemployment. Older workers start with high earnings but end up with lower earnings before non-employment. Younger workers have a stable small earnings disadvantage before non-employment. Younger employees see higher earnings after unemployment, while older employees have lower earnings even six years later. Returning to the same employer after non-employment benefits younger employees more. Data from 1993-2001 show precise lengths of non-employment spells and earnings impacts.