This dissertation aims to enhance our understanding of the factors that shape workers’ earnings trajectories. It investigates institutional and exogenous factors that significantly impact workers’ earnings and can lead to long-term effects. The dissertation is structured into three distinct chapters, each focusing on a different facet of this topic. The first chapter investigates the consequences of a significant shock to the Spanish economy, the burst of the construction sector during the Great Recession, and how workers mitigate its pervasive effects. The exploration delves into the reallocation of workers, considering the influence of working in more affected regions on their geographic and sectoral mobility. The chapter identifies facto...