The Real Effects of Brexit on Labor Demand: Evidence from Firm-level Data

Hang Do (), Kiet Duong (), Toan Huynh () and Nam Vu ()
Additional contact information
Hang Do: University of Southampton
Kiet Duong: University of York
Toan Huynh: Queen Mary University of London
Nam Vu: Miami University

No 117, Working Papers from Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research

Abstract: Using the distance to the Irish border for UK firms that did not change their location after the 2016 Referendum to isolate the effects of Brexit at the firm level, we find Brexit implementation in 2020 caused exposed firms to cut their workforce by up to 15.7% on average relative to non-exposed firms. These exposed firms are also more likely to have lower growth expectations and more likely to increase their research and development (R&D) expenditure. Such results highlight the expectation channel and support the hypothesis that firms prioritize innovations in response to Brexit.

Keywords: Brexit; firm responses; technology; EU workers (search for similar items in EconPapers)
JEL-codes: D25 D84 F16 O32 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2024-04
New Economics Papers: this item is included in nep-eec, nep-eur and nep-sbm
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