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Workers’ participation in regional economic change following establishment closure
Umeå universitet, Samhällsvetenskapliga fakulteten, Institutionen för geografi och ekonomisk historia.ORCID-id: 0000-0002-1413-3707
Umeå universitet, Samhällsvetenskapliga fakulteten, Institutionen för geografi och ekonomisk historia.
Umeå universitet, Samhällsvetenskapliga fakulteten, Institutionen för geografi och ekonomisk historia.ORCID-id: 0000-0003-3570-7690
Handelshögskolan, Göteborgs universitet.ORCID-id: 0000-0002-8081-5095
2020 (engelsk)Inngår i: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 54, nr 2, s. 589-604Artikkel i tidsskrift (Fagfellevurdert) Published
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.

sted, utgiver, år, opplag, sider
Springer, 2020. Vol. 54, nr 2, s. 589-604
Emneord [en]
Creative destruction, establishment closure, worker reallocation, regional transformation
HSV kategori
Forskningsprogram
kulturgeografi; ekonomisk historia
Identifikatorer
URN: urn:nbn:se:umu:diva-146664DOI: 10.1007/s11187-018-0036-2ISI: 000518505800014Scopus ID: 2-s2.0-85045254824Lokal ID: 881251-881253OAI: oai:DiVA.org:umu-146664DiVA, id: diva2:1198124
Forskningsfinansiär
Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-1313Tilgjengelig fra: 2018-04-16 Laget: 2018-04-16 Sist oppdatert: 2023-03-23bibliografisk kontrollert
Inngår i avhandling
1. Rough starts and tough times: geographies of workers and firms in transition
Åpne denne publikasjonen i ny fane eller vindu >>Rough starts and tough times: geographies of workers and firms in transition
2021 (engelsk)Doktoravhandling, med artikler (Annet vitenskapelig)
Abstract [en]

Economic change can lead to multiple and sometimes conflicting outcomes for workers, employers, and regions. At the center of economic change are the dynamic interactions among diverse workers and firms in specific labor market contexts. This thesis approached those spatial interactions from the perspective of labor market matching, where the different opportunities for workers and firms to match were investigated. This adds to the growing body of literature that seeks to understand what factors are behind the growing regional divergence in earnings and employment, and who is particularly impacted by the uneven labor market changes. 

To this end, the aim of this thesis was to analyze the regional patterns and outcomes for workers and firms in the labor market matching process. Four quantitative studies were conducted using data from Swedish administrative registers from 1995 to 2012. Given that the dynamics of labor market matching are complex, the studies approached the aim from different angles and for different groups of workers. In particular, the outcomes and patterns were investigated in relation to crucial periods for workers and firms, where frictions in labor market matching could potentially have particularly negative effects. The studies investigated earnings, employment, and hiring for young workers in low-paid jobs, for workers displaced by firm closures, and for new firms competing for survival. 

The empirical results indicate the importance of a flexible labor market that facilitates the matching process where individuals' existing competencies can be applied and developed. This is a particular challenge for workers who lose their jobs to establishment closures outside the large regions, since the results show that worse job matches and less productive re-employment opportunities are more common and can have particularly negative consequences in smaller and more peripheral regions. However, even if there are more job opportunities in larger regions, the results suggest the opportunities are not necessarily accessible to everyone. Results indicate that workers in low-wage jobs do not benefit from a boost in earnings in larger regions, which may put them in a precarious situation considering the higher cost of living in those regions. Lastly, the thesis highlights the importance of not only individual human capital in determining a job match, but also its relational dimension which captures how well different workers’ skills are matched to one another in the workplace. This was found to be associated with individual earnings recovery after plant closure and new firm survival. The findings call for policies that carefully combine supply- and demand-side approaches in economic development. 

sted, utgiver, år, opplag, sider
Umeå: Umeå universitet, 2021. s. 54
Serie
GERUM, ISSN 1402-5205 ; 2021:1
Emneord
agglomerations, job matching, human capital, plant closure, firm survival
HSV kategori
Identifikatorer
urn:nbn:se:umu:diva-182854 (URN)978-91-7855-568-0 (ISBN)978-91-7855-569-7 (ISBN)
Disputas
2021-06-04, Hörsal UB A 220, Lindellhallen, Umeå, 10:15 (engelsk)
Opponent
Veileder
Tilgjengelig fra: 2021-05-12 Laget: 2021-05-07 Sist oppdatert: 2021-05-10bibliografisk kontrollert

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Andersson, Lars-FredrikDanley, ThereseEriksson, RikardHenning, Martin

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