Locate Your Nearest Exit: Mass Layoffs and Local Labor Market Response

Andrew Foote, Michel Grosz and Ann Stevens

No 21618, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Large shocks to local labor markets can cause long-lasting changes to employment, unemployment and the local labor force. This study examines the relationship between mass layoffs and the long-run size of the local labor force. It considers four main channels through which the local labor force may adjust: in-migration, out-migration, retirement, and disability insurance enrollment. We show that these channels account for over half of the labor force reductions following a mass layoff event. By measuring the residual difference between these channels and net labor force change, we also show that labor force non-participation accounted for much of the local labor force response in the period during and after the Great Recession.

JEL-codes: H55 J01 J63 R23 (search for similar items in EconPapers)
Date: 2015-10
New Economics Papers: this item is included in nep-lab and nep-ure
Note: AG LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published as Locate Your Nearest Exit: Mass Layoffs and Local Labor Market Response Andrew Foote, Michel Grosz, and Ann Stevens ILR Review First Published January 31, 2018 https://doi.org/10.1177/0019793917753095

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Related works:
Journal Article: Locate Your Nearest Exit: Mass Layoffs and Local Labor Market Response (2019)
Working Paper: Locate Your Nearest Exit: Mass Layoffs and Local Labor Market Response (2015)
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