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

VfS Annual Conference 2016 (Augsburg): Demographic Change from Verein für Socialpolitik / German Economic Association

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.

JEL-codes: D22 J65 L20 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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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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