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Eriksson, R., Hane-Weijman, E. & Henning, M. (2018). Sectoral and geographical mobility of workers after large establishment cutbacks or closures. Environment and planning A, 50(5), 1071-1091
Open this publication in new window or tab >>Sectoral and geographical mobility of workers after large establishment cutbacks or closures
2018 (English)In: Environment and planning A, ISSN 0308-518X, E-ISSN 1472-3409, Vol. 50, no 5, p. 1071-1091Article in journal (Refereed) Published
Abstract [en]

This paper studies redundant workers’ industrial and geographical mobility, and the consequences of post-redundancy mobility for regional policy strategies. This is accomplished by means of a database covering all workers who became redundant in major shutdowns or cutbacks in Sweden between 1990 and 2005. Frequencies of industrial and geographical mobility are described over time, and the influence of some important characteristics that make workers more likely to be subject to particular forms of mobilities are assessed. We find that re-employment rates vary extensively across industries and time. Whereas going back to the same or related industries is the most common re-employment strategy among workers who find a new job in the first year, workers who do not benefit from quick re-employment are increasingly squeezed out to new job fields and regions. Older workers and workers with high vested interest in their original industries usually employ a “same-industry/same-region” strategy. This most frequent, and perhaps often most attractive, same-industry strategy comes at a cost, however. Individuals who instead pursue other mobility strategies have a lower risk of suffering from another major redundancy in the future. Thus, in terms of regional policy, strategies promoting diversification to related industries after major redundancies seem to be much more important than trying to retain workers in their old industry. In this case the route via education (university or vocational training) is important, as it increases the likelihood of successfully changing industry at time of re-employment. 

Keywords
redundancy, re-employment, labour mobility, industry relatedness
National Category
Economic Geography
Research subject
Social and Economic Geography
Identifiers
urn:nbn:se:umu:diva-146087 (URN)10.1177/0308518X18772581 (DOI)000440019400009 ()2-s2.0-85050760808 (Scopus ID)881251 (Local ID)881251 (Archive number)881251 (OAI)
Funder
Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-1313
Available from: 2018-03-28 Created: 2018-03-28 Last updated: 2019-02-15Bibliographically approved
Andersson, L.-F., Danley, T., Eriksson, R. & Henning, M. (2018). Workers’ participation in regional economic change following establishment closure. Small Business Economics
Open this publication in new window or tab >>Workers’ participation in regional economic change following establishment closure
2018 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913Article in journal (Refereed) Epub ahead of print
Abstract [en]

This article analyses if and when workers affected by economic destruction in the form of establishment closures move to more productive or newly started establishments in the region, become self-employed, leave the region or become displaced. Results from multinominal probit models show that the majority of these workers face destructive employment outcomes from a Schumpeterian point of view compared to a matched sample of workers not subject to a closure. However, we do find indications of a creative destruction as a small, albeit significant, share become employed in young establishments. Different types of human capital influence the likelihood of triggering positive or negative regional outcomes. While higher education significantly decreases the risk for unemployment, high-income earners more often become engaged in creative outcomes. Firm tenure increases the likelihood of becoming employed in younger establishments. There are significant spatial differences where metropolitan regions excel as loci of creative change, whereas smaller and peripheral regions face far less creative outcomes of economic transformation.

Place, publisher, year, edition, pages
Springer, 2018
Keywords
Creative destruction, establishment closure, worker reallocation, regional transformation
National Category
Economic Geography Human Geography Economic History
Research subject
Social and Economic Geography; Economic History
Identifiers
urn:nbn:se:umu:diva-146664 (URN)10.1007/s11187-018-0036-2 (DOI)881251-881253 (Local ID)881251-881253 (Archive number)881251-881253 (OAI)
Funder
Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-1313
Available from: 2018-04-16 Created: 2018-04-16 Last updated: 2019-09-18
Identifiers
ORCID iD: ORCID iD iconorcid.org/0000-0002-8081-5095

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