Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82225
Authors: 
Andersson, Fredrik
Vejsiu, Altin
Year of Publication: 
2001
Series/Report no.: 
Working Paper, IFAU - Institute for Labour Market Policy Evaluation 2001:6
Abstract: 
We study the derminants of plant closures i Swedish manufacturing using linked employer-employee data. From our theoretical framework we derive and empirically test hypothesis regarding the linkages between the probability of plant failure and: 1) industry-specific characteristics of production and product demand; 2) local labor market conditions; and 3) plant-specific sources of heterogeneity, including the importance of insider mechanisms in wage determination, plant specific human capital, selection mechanisms and technology vintage effects. Our results suggest that all these factors matter in ways that by and large conform to the a priori hypotheses.
Subjects: 
Plant closures
job reallocation
insider wage determination
selection mechanisms
capital vintage effects
linked employer-employee data
JEL: 
J21
J23
Document Type: 
Working Paper

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