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Exploring regional differences in the regional capacity to absorb displacements

Author

Listed:
  • Nyström, Kristina

    (The Ratio Institute and The Royal Institute of Technology)

  • Viklund Ros, Ingrid

    (The Royal Institute of Technology)

Abstract

Every year there is a substantial turbulence in an economy with respect to new firm formation and business closures. Each year, according to Tillväxtanalys (2009), about 100 000 Swedish employees lose their job due to a business closure. However, the share of firm closures vary substantially across Swedish regions (Nyström, 2007; 2009) and consequently the number of workers affected by the firm closure can be expected to vary across regions. In this paper we explore the patterns of regional displacements and to what extent there are differences in the regional capacity to re-employ displaced workers within one year. We use individual-firm level data to identify all establishment closures and re-employments in Sweden during the period 2001-2009. On average the share of displaced workers is 1.22 percent, but the regional variation is substantial. We find that the regional share of re-employments within the region where the displaced worker was employed varies between 15 and 85 percent. We do not find any correlation between the share of displacements and the capacity to absorb displaced workers.

Suggested Citation

  • Nyström, Kristina & Viklund Ros, Ingrid, 2014. "Exploring regional differences in the regional capacity to absorb displacements," Ratio Working Papers 235, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0235
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    References listed on IDEAS

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    Cited by:

    1. Rikard H Eriksson & Emelie Hane-Weijman & Martin Henning, 2018. "Sectoral and geographical mobility of workers after large establishment cutbacks or closures," Environment and Planning A, , vol. 50(5), pages 1071-1091, August.
    2. Nyström, Kristina, 2015. "Pre- and post-entrepreneurship labor mobility of entrepreneurs and employees in entrepreneurial firms," Working Paper Series in Economics and Institutions of Innovation 420, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    3. Kristina Nyström, 2020. "Entrepreneurship after displacement," Small Business Economics, Springer, vol. 54(2), pages 475-494, February.
    4. Kristina Nyström, 2015. "Regional resilience to displacements: Explaining the regional capacity to re-employ displaced workers," ERSA conference papers ersa15p1018, European Regional Science Association.
    5. 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.
    6. Nyström, Kristina, 2016. "Entrepreneurship after displacement: The transition and performance of entrepreneurial ventures created after displacement," Working Paper Series in Economics and Institutions of Innovation 443, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    7. Nyström, Kristina, 2016. "Regional resilience to displacement: Evidence from Panel and Quantile regressions," Ratio Working Papers 276, The Ratio Institute.

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    More about this item

    Keywords

    Displacements; exit. Labor mobility; regional development;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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