Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/231467
Authors: 
Ahammer, Alexander
Grübl, Dominik
Winter-Ebmer, Rudolf
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 2005
Abstract: 
We show that downsizing has substantial externalities on the health of workers who remain in the firm. To this end, we study mass layoff (ML) survivors in Austria, using workers who survive a ML themselves, but a few years in the future, as a control group. Based on highquality administrative data, we find evidence that downsizing has persistent effects on mental and physical health, and that these effects can be explained by workers fearing for their own jobs. We also show that health externalities due to downsizing imply non-negligible cost for firms, and that wage cuts may have similar effects.
Subjects: 
Downsizing
mass layoffs
health
job insecurity
JEL: 
J63
I12
J23
Document Type: 
Working Paper

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