Premium
What Happens to the Employers Involved in Mass Layoffs?
Author(s) -
Weber Handwerker Elizabeth,
Mason Lowell
Publication year - 2018
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/soej.12294
Subject(s) - layoff , displaced workers , closure (psychology) , recession , labour economics , great recession , demographic economics , economics , critical mass (sociodynamics) , business , unemployment , market economy , microeconomics , economic growth , keynesian economics
We apply the empirical framework of the displaced worker literature to the study of outcomes for displacing employers. Long‐term patterns of employment, average wages, and closure probabilities before and after mass layoffs vary by the reason for layoffs, the industry of employers, employer age, and the period in which the layoff took place. Employers with mass layoffs during the Great Recession and the recovery that has followed have milder patterns of employment levels and closure probabilities than employers with layoffs in previous periods. These differences are not fully explained by changes in the observable characteristics of employers and layoffs.