Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145100
Authors: 
Müller, Steffen
Fackler, Daniel
Stegmaier, Jens
Year of Publication: 
2016
Series/Report no.: 
IWH Discussion Papers 27/2016
Abstract: 
To assess to what extent collective job displacements can be regarded as unanticipated exogenous shocks for affected employees, we analyze plant-level employment patterns before bankruptcy, plant closure without bankruptcy, and mass layoff. Utilizing administrative data covering all West German private sector plants, we find no systematic employment reductions prior to mass layoffs, a strong and long-lasting reduction prior to closures, and a much shorter shadow of death preceding bankruptcy. Our analysis of worker flows underlines that bankruptcies seem to struggle for survival while closures follow a shrinking strategy. We conclude that the scope of worker anticipation of upcoming job loss is smallest for mass layoffs and largest for closures without bankruptcy.
Subjects: 
job displacement
shadow of death
plant closure
bankruptcy
mass layoff
JEL: 
D22
J65
L2
Document Type: 
Working Paper

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