Effects of mass layoffs on local employment - evidence from geo-referenced data

Abstract

"Using an event study approach and a novel data set that links administrative information on German establishments with exact distance measures from geo-referenced address data, we analyze the net impact of mass layoffs on local employment. We find that local spillovers significantly attenuate the direct impact of mass layoffs on municipal-level employment. About a quarter of the 1-year direct employment loss due to a mass layoff event is absorbed within the same municipality. Local spillovers are especially pronounced very close to the mass layoff site; the majority of the absorption is concentrated within a 1000-m radius. There is little evidence of spillovers beyond the affected municipality." (Author's abstract, IAB-Doku, © Oxford University Press) ((en))

Cite article

Vom Berge, P. & Schmillen, A. (2023): Effects of mass layoffs on local employment - evidence from geo-referenced data. In: Journal of economic geography, Vol. 23, No. 3, p. 509-539. DOI:10.1093/jeg/lbac026