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Returning to work: regional determinants of re-employment after major redundancies

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  • Emelie Hane-Weijman
  • Rikard H. Eriksson
  • Martin Henning

Abstract

Using matched employer–employee data on roughly 429,000 workers made redundant from large plant closures or major downsizing in Sweden between 1990 and 2005, this paper analyses the role of the regional industry mix (specialization, related and unrelated variety) in the likelihood of returning to work. The results show that a high presence of same or related industries speeds up the re-employment process, while high concentrations of unrelated activities do not. The role of related activities is particularly evident in the short run and in regions with high unemployment. Consequently, the prospect of successful diversification is enhanced in regions with related industries.

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  • 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.
    • Handle: RePEc:taf:regstd:v:52:y:2018:i:6:p:768-780
    DOI: 10.1080/00343404.2017.1395006
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    2. Zoltan Elekes & Anna Baranowska-Rataj & Rikard Eriksson, 2021. "Local access to skill-related high-income jobs facilitates career advancement for low-wage workers," Papers in Evolutionary Economic Geography (PEEG) 2136, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    3. Jaakko Simonen & Johannes Herala & Rauli Svento, 2020. "Creative destruction and creative resilience: Restructuring of the Nokia dominated high‐tech sector in the Oulu region," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 931-953, October.
    4. Viviana Celli & Augusto Cerqua & Guido Pellegrini, 2023. "The long-term effects of mass layoffs: do local economies (ever) recover?," Journal of Economic Geography, Oxford University Press, vol. 23(5), pages 1121-1144.
    5. Emelie Hane-Weijman & Rikard H. Eriksson & David Rigby, 2020. "How do occupational relatedness and complexity condition employment dynamics in periods of growth and recession?," Papers in Evolutionary Economic Geography (PEEG) 2011, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    6. V.I. Rodionova & L.A. Shvachkina & V.A. Ivashova, 2018. "Social Correlation of Professional Educational Services and Labor Market as a Vector of Successful Social and Economic Development," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 285-293.
    7. John-Erik Rørheim & Ron Boschma, 2022. "Skill-relatedness and employment growth of firms in times of prosperity and crisis in an oil-dependent region," Environment and Planning A, , vol. 54(4), pages 676-692, June.
    8. Will McDowall & Tobias Reinauer & Panagiotis Fragkos & Michal Miedzinski & Jennifer Cronin, 2023. "Mapping regional vulnerability in Europe’s energy transition: development and application of an indicator to assess declining employment in four carbon-intensive industries," Climatic Change, Springer, vol. 176(2), pages 1-23, February.
    9. Nicola Cortinovis & Dongmiao Zhang & Ron Boschma, 2022. "Regional diversification and intra-regional wage inequality in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 2216, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2022.

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