Exploring regional differences in the regional capacity to absorb displacements

Kristina Nyström and Ingrid Viklund Ros ()
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Ingrid Viklund Ros: The Royal Institute of Technology

No 235, Ratio Working Papers from The Ratio Institute

Abstract: Every year there is a substantial turbulence in an economy with respect to new firm formation and business closures. Each year, according to Tillväxtanalys (2009), about 100 000 Swedish employees lose their job due to a business closure. However, the share of firm closures vary substantially across Swedish regions (Nyström, 2007; 2009) and consequently the number of workers affected by the firm closure can be expected to vary across regions. In this paper we explore the patterns of regional displacements and to what extent there are differences in the regional capacity to re-employ displaced workers within one year. We use individual-firm level data to identify all establishment closures and re-employments in Sweden during the period 2001-2009. On average the share of displaced workers is 1.22 percent, but the regional variation is substantial. We find that the regional share of re-employments within the region where the displaced worker was employed varies between 15 and 85 percent. We do not find any correlation between the share of displacements and the capacity to absorb displaced workers.

Keywords: Displacements; exit. Labor mobility; regional development (search for similar items in EconPapers)
JEL-codes: J00 R10 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-10-07
New Economics Papers: this item is included in nep-ent, nep-geo, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Chapter: Exploring regional differences in the regional capacity to absorb displacements (2017)
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