Advanced Search
MyIDEAS: Login

Dilemmas of Downsizing During the Great Recession: Crisis Strategies of European Employers

Contents:

Author Info

  • Hendrik Dalen

    ()

  • Kène Henkens

Abstract

The present paper analyzes the choices faced by European employers when threatened with the prospect of the mass lay-off of their employees as a result of the Great Recession. By means of a representative survey among employers in Italy, Germany, Denmark, Poland, the Netherlands and Sweden in 2009, we show that employers mainly prefer to tackle such threats by offering short-time work, and by early retirement packages to older workers, in conjunction with buy-outs. The latter preference is particularly visible in countries where employers perceive the level of employment protection to be high. The only notable exception is Denmark, where employers prefer to reduce working hours. In general, a sense of generational fairness influences downsizing preferences, with those employers who favor younger workers particularly likely to use early retirement and buy-outs when downsizing, followed by working time reductions. Wage reductions and administrative dismissal are less favored by European employers. In particular, CEOs and owners are more inclined than lower-level managers to cut wages. Copyright Springer Science+Business Media New York 2013

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1007/s10645-013-9211-7
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Springer in its journal De Economist.

Volume (Year): 161 (2013)
Issue (Month): 3 (September)
Pages: 307-329

as in new window
Handle: RePEc:kap:decono:v:161:y:2013:i:3:p:307-329

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100260

Related research

Keywords: Downsizing; Early retirement; Fairness; Older workers; Recession; D2; J63; J23; J26;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August.
  2. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages S285-300, October.
  3. Jan C. van Ours & Lenny Stoeldraijer, 2010. "Age, Wage and Productivity," CESifo Working Paper Series 2965, CESifo Group Munich.
  4. Coile Courtney C & Levine Phillip B, 2011. "The Market Crash and Mass Layoffs: How the Current Economic Crisis May Affect Retirement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-42, April.
  5. Kène Henkens & Joop Schippers, 2012. "Active ageing in Europe: the role of organisations," International Journal of Manpower, Emerald Group Publishing, vol. 33(6), pages 604-611, May.
  6. Dalen, H.P. van & Henkens, C.J.I.M. & Schippers, J.J., 2009. "Dealing with older workers in Europe: A comparative survey of employers' attitudes and actions," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3529847, Tilburg University.
  7. Pierre, Gaelle & Scarpetta, Stefano, 2006. "Employment protection: Do firms' perceptions match with legislation?," Economics Letters, Elsevier, vol. 90(3), pages 328-334, March.
  8. S. Dellavigna., 2011. "Psychology and Economics: Evidence from the Field," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 4.
  9. Hendrik P. Van Dalen & Kène Henkens & Joop Schippers, 2010. "Productivity of Older Workers: Perceptions of Employers and Employees," Population and Development Review, The Population Council, Inc., vol. 36(2), pages 309-330.
  10. Danielle Venn, 2009. "Legislation, Collective Bargaining and Enforcement: Updating the OECD Employment Protection Indicators," OECD Social, Employment and Migration Working Papers 89, OECD Publishing.
  11. Adriaan Kalwij & Arie Kapteyn & Klaas Vos, 2010. "Retirement of Older Workers and Employment of the Young," De Economist, Springer, vol. 158(4), pages 341-359, November.
  12. Tito Boeri & Juan F. Jimeno, 2003. "The Effects of Employment Protection: Learning from Variable Enforcement," Working Papers 252, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  13. Autor, David & Dorn, David, 2009. "This Job Is 'Getting Old:' Measuring Changes in Job Opportunities Using Occupational Age Structure," IZA Discussion Papers 3970, Institute for the Study of Labor (IZA).
  14. Alicia H. Munnell & Rebecca April Yanyuan Wu, 2012. "Are Aging Baby Boomers Squeezing Young Workers Out of Jobs?," Issues in Brief ib2012-18, Center for Retirement Research, revised Oct 2012.
  15. Rees, Albert, 1993. "The Role of Fairness in Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 243-52, January.
  16. Arie Kapteyn & Klaas de Vos & Adriaan Kalwij, 2010. "Early Retirement and Employment of the Young in the Netherlands," NBER Chapters, in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 243-259 National Bureau of Economic Research, Inc.
  17. Stoeldraijer, Lenny & van Ours, Jan C., 2010. "Age, wage and productivity," CEPR Discussion Papers 7713, C.E.P.R. Discussion Papers.
  18. Ours, J.C. van & Stoeldraijer, L., 2010. "Age, Wage and Productivity," Discussion Paper 2010-12, Tilburg University, Center for Economic Research.
  19. George A. Akerlof, 2009. "How Human Psychology Drives the Economy and Why It Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1175-1175.
  20. Wieteke S. Conen & Hendrik P. van Dalen & Kène Henkens, 2012. "Ageing and employers’ perceptions of labour costs and productivity: A survey among European employers," International Journal of Manpower, Emerald Group Publishing, vol. 33(6), pages 629-647, May.
  21. Weiss, Andrew W, 1980. "Job Queues and Layoffs in Labor Markets with Flexible Wages," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 526-38, June.
  22. Christopher A. Pissarides, 2010. "Why Do Firms Offer 'Employment Protection'?," Economica, London School of Economics and Political Science, vol. 77(308), pages 613-636, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Lundborg, Per & Skedinger, Per, 2014. "Employer Attitudes towards Refugee Immigrants," Working Paper Series 1025, Research Institute of Industrial Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:kap:decono:v:161:y:2013:i:3:p:307-329. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.