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


Ontology type: schema:ScholarlyArticle      Open Access: True


Article Info

DATE

2017-12

AUTHORS

Kim P. Huynh, Yuri Ostrovsky, Robert J. Petrunia, Marcel C. Voia

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. More... »

PAGES

7

Identifiers

URI

http://scigraph.springernature.com/pub.10.1186/s40172-017-0057-0

DOI

http://dx.doi.org/10.1186/s40172-017-0057-0

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1085988288


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