This week's book giveaway is in the OO, Patterns, UML and Refactoring forum. We're giving away four copies of Refactoring for Software Design Smells: Managing Technical Debt and have Girish Suryanarayana, Ganesh Samarthyam & Tushar Sharma on-line! See this thread for details.
No, static variables aren't serialized. Like Stanley said, first z was 9, then the code incremented it, so now it's 10. If you remove all the code which serializes and deserializes objects from that example you will see the same thing happening.