Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/51991 
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 5794
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
In this paper we study the joint decision process of changing the structure of jobs and laying off individual workers in a firm that downsizes its workforce. A hierarchical decision model is proposed and estimated using personnel data from a firm in demise comparing the characteristics of the individual workers and the structure of the firm's labour force before and after its reorganization. Our results show that workers in jobs in the top levels of each skill group's hierarchy are better protected against downsizing due to larger productivity shocks and larger firing costs.
Subjects: 
hierarchies
restructuring
control span
job displacement
JEL: 
J63
J65
L23
L60
L93
M51
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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