Industry shutdown rates and permanent layoffs: evidence from firm-worker matched data
Kim Huynh (),
Robert Petrunia () and
IZA Journal of Labor Economics, 2017, vol. 6, issue 1, 1-31
Abstract Firm shutdown creates a turbulent situation for workers as it leads directly to layoffs for its workers. An additional consideration is whether a firm’s shutdown within an industry creates turbulence for workers at other continuing firms. Using data drawn from the Longitudinal Worker File, a Canadian firm-worker matched employment database, we investigate the impact of industry shutdown rates on workers at continuing firm. This paper exploits variation in shutdown rates across industries and within an industry over time to explain the rate of permanent layoffs and the growth of workers’ earnings. We find an increase in industry shutdown rates increases the probability of permanent layoffs and decreases earnings growth for workers at continuing firms.
Keywords: Worker separation; Firm survival; Selection (search for similar items in EconPapers)
JEL-codes: J24 J31 J63 C35 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1186/s40172-017-0057-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:izalbr:v:6:y:2017:i:1:d:10.1186_s40172-017-0057-0
Ordering information: This journal article can be ordered from
Access Statistics for this article
IZA Journal of Labor Economics is currently edited by Joni Hersch and Pierre Cahuc
More articles in IZA Journal of Labor Economics from Springer, Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().