Plant-level employment development before collective displacements: Comparing mass layoffs, plant closures, and bankruptcies

Daniel Fackler, Steffen Müller and Jens Stegmaier
Authors registered in the RePEc Author Service: Steffen Mueller

No 27/2016, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: To assess to what extent collective job displacements can be regarded as unanticipated exogenous shocks for affected employees, we analyze plant-level employment patterns before bankruptcy, plant closure without bankruptcy, and mass layoff. Utilizing administrative data covering all West German private sector plants, we find no systematic employment reductions prior to mass layoffs, a strong and long-lasting reduction prior to closures, and a much shorter shadow of death preceding bankruptcy. Our analysis of worker flows underlines that bankruptcies seem to struggle for survival while closures follow a shrinking strategy. We conclude that the scope of worker anticipation of upcoming job loss is smallest for mass layoffs and largest for closures without bankruptcy.

Keywords: job displacement; shadow of death; plant closure; bankruptcy; mass layoff (search for similar items in EconPapers)
JEL-codes: D22 J65 L2 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Plant-level employment development before collective displacements: comparing mass layoffs, plant closures and bankruptcies (2018)
Journal Article: Plant-level employment development before collective displacements: comparing mass layoffs, plant closures and bankruptcies (2018)
Working Paper: Plant-Level Employment Development before Collective Displacements: Comparing Mass Layoffs, Plant Closures, and Bankruptcies (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:272016

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