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Long‐term effects of public policy for displaced workers in Sweden

Author

Listed:
  • Henry Ohlsson
  • Donald Storrie

Abstract

Purpose - The purpose of this paper is to study the long‐term effects of policy measures for displaced workers. The focus is on the individuals affected by the closure of the Uddevalla Shipyard in western Sweden in 1985 and the cutbacks at the LKAB mines in northern Sweden in 1983. Design/methodology/approach - These workers not only experienced job loss, but were also target groups for extraordinary labour market policies. Using register data from Statistics Sweden (labour market status, earnings, education etc.), the authors follow those affected until 1999, comparing their experiences with the development of a large sample of other workers who lost their jobs because of plant closures in 1987‐1988 but who did not receive extraordinary measures. Findings - Estimations of the net effect of the extraordinary measures find that they did have positive long‐term effects for the displaced shipyard workers and miners. They have higher employment, not higher unemployment, and higher earnings than the comparison group. Originality/value - The authors are not aware of any previous research on the effects of labour market policy addressing displacement in the long term.

Suggested Citation

  • Henry Ohlsson & Donald Storrie, 2012. "Long‐term effects of public policy for displaced workers in Sweden," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(5), pages 514-538, August.
    • Handle: RePEc:eme:ijmpps:v:33:y:2012:i:5:p:514-538
    DOI: 10.1108/01437721211253173
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    Cited by:

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    2. Lars-Fredrik Andersson & Therese Danley & Rikard Eriksson & Martin Henning, 2020. "Workers’ participation in regional economic change following establishment closure," Small Business Economics, Springer, vol. 54(2), pages 589-604, February.
    3. Sérgio Lagoa & Fátima Suleman, 2016. "Industry- and occupation-specific human capital: evidence from displaced workers," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(1), pages 44-68, April.
    4. Emelie Hane-Weijman & Rikard H. Eriksson & Martin Henning, 2018. "Returning to work: regional determinants of re-employment after major redundancies," Regional Studies, Taylor & Francis Journals, vol. 52(6), pages 768-780, June.
    5. Anne Otto & Rikard Eriksson & Martin Henning, 2015. "Industrial and geographical mobility of workers exiting the Swedish and West German shipbuilding industry 1970-2000," ERSA conference papers ersa15p958, European Regional Science Association.
    6. Fackler, Daniel & Stegmaier, Jens & Weigt, Eva, 2019. "Does extended unemployment benefit duration ameliorate the negative employment effects of job loss?," Labour Economics, Elsevier, vol. 59(C), pages 123-138.

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