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

EconStor Open Access Articles and Book Chapters, 2018, vol. 50, issue 50, 5416-5435

Abstract: This article analyzes the development of employment levels and worker flows before bankruptcies, plant closure without bankruptcies and mass layoffs. Utilizing administrative plant-level data for Germany, 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 bankruptcies. Employment reductions in closing plants, in contrast to bankruptcies and mass layoffs, do not come along with increased worker flows. These patterns point to an intended and controlled shrinking strategy for closures without bankruptcy and to an unintended collapse for bankruptcies and mass layoffs.

Keywords: Job displacement; shadow of death; plant disclosure; bankruptcy; mass layoff (search for similar items in EconPapers)
JEL-codes: D22 J65 L2 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
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)
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:espost:184751

DOI: 10.1080/00036846.2018.1486994

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