Industry shutdown rates and permanent layoffs: evidence from firm-worker matched data

Kim Huynh, Yuri Ostrovsky, Robert Petrunia and Marcel Voia

Post-Print from HAL

Abstract: 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.

Date: 2017-12
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published in IZA Journal of Labor Economics, 2017, 6 (1), pp.7. ⟨10.1186/s40172-017-0057-0⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Industry shutdown rates and permanent layoffs: evidence from firm-worker matched data (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03573064

DOI: 10.1186/s40172-017-0057-0

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().