There are other factors involved, including career disruption, and often lowered income at the new place of employment.
Recessions and the Costs of Job Loss (pdf)
Steven J. Davis, Till von Wachter, prepared for Brookings Institute, 23 November 2011 (Hat tip: MR)
In present value terms, men lose an average of 1.4 years of pre-displacement earnings if displaced in mass layoff events that occur when the national unemployment rate is below 6 percent. They lose a staggering 2.8 years of pre-displacement earnings if displaced when the unemployment rate exceeds 8 percent.
And as I noted, the losses continue after re-employment:
|Average Annual Earning Loss as % (from page 18)|