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Firm shutdown and labour consequences

In times of economic crisis, it is easy to get caught by concerns regarding developments on the labor market and the financial markets, but also how economic downturn affects different parts of the country. For obvious reasons, it is often forgotten that crises can in fact be regarded as necessary elements of long-term economic development. However, more knowledge is needed about how and under what conditions economic destruction becomes creative and successful for individuals and for regions, and under what conditions they do not. In labor market geography and labor economics, there is a long tradition of studying individual consequences of, for example, company shutdowns. However, few have studied, for example, the role of the regional economic structure for individuals' opportunities for job creation, how geographical and professional mobility works for those who lose their job after a closure or cutdown, the importance of the mobility to individual future labour market vulnerability and to what extent those who lose their jobs are involved in structural renewal of regional economies (e.g., if they become entrepreneurs).

In a project funded by FORTE, we have investigated these issues in collaboration with researchers from Umeå University. With Rikard Eriksson and Anne Otto, we have studied the post-redundnacy outcomes of former shipbuilding workers in Sweden and Germany. Together with Emelie Hane-Weijman and Rikard Ericsson, we have analyzed the role of the regional economic structure for re-employment of redundant workers. More results are pending publication.

More information: Martin Henning

Page Manager: Martin Henning|Last update: 1/25/2018
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