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DESTRUCTION AND REALLOCATION OF SKILLS FOLLOWING LARGE COMPANY CLOSURES
Author(s) -
Holm Jacob Rubæk,
Østergaard Christian Richter,
Olesen Thomas Roslyng
Publication year - 2017
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12302
Subject(s) - closure (psychology) , urbanization , business , qualitative analysis , labour economics , industrial organization , marketing , economics , qualitative research , market economy , economic growth , sociology , social science
This paper analyzes what happens to redundant skills and workers when large companies close down and whether their skills are destroyed or reallocated. The analysis is based on a combination of qualitative and quantitative data of the closure of four companies. Getting a job in a skill‐related industry or moving to a spinoff firm leads to skill reallocation. Thus, the result depends on regional idiosyncrasies such as industry structure and urbanization. If local policy makers and the owners exert a coordinated effort, it is possible to create success stories of less skill destruction in urban as well as peripheral regions.