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Cultural and public services as factors of city resilience ? Evidence from big plant closures and downsizing

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  • Kristian Behrens
  • Manassé Drabo
  • Florian Mayneris

Abstract

We combine census and establishment-level data for 2001–2017 to study the impact of mass layoffs of big manufacturing plants on city-level population and its composition in Canada. We find that manufacturing plant closures and downsizing lead to a decline in subsequent population growth, especially among the young, those of working age, migrants, and the less skilled. There are also sizable negative effects on the local employment in other industries, which can explain why such negative local labor demand shocks affect population dynamics. Public services (health and education) and cultural and recreational amenities are shown to make cities more resilient and help them retain population following negative local labor demand shocks. Nous combinons des données de recensement et des données au niveau des établissements pour la période 2001-2017 afin d'étudier l'impact des licenciements massifs dans les grandes entreprises manufacturières sur la taille et la composition des villes canadiennes. Nous constatons que les fermetures d'usines et les licenciements massifs affectent négativement la croissance démographique ultérieure, en particulier parmi les jeunes, les personnes en âge de travailler, les migrants et les personnes moins qualifiées. Il existe également des effets négatifs importants sur l'emploi local dans d'autres secteurs que l’industrie manufacturière, ce qui peut expliquer pourquoi de tels chocs négatifs de demande de main-d'oeuvre affectent la dynamique démographique. Les services publics (en santé et en éducation) et les aménités culturelles et récréatives rendent les villes plus résilientes et les aident à conserver leur population après des chocs négatifs de demande de main-d'oeuvre.

Suggested Citation

  • Kristian Behrens & Manassé Drabo & Florian Mayneris, 2021. "Cultural and public services as factors of city resilience ? Evidence from big plant closures and downsizing," CIRANO Working Papers 2021s-41, CIRANO.
  • Handle: RePEc:cir:cirwor:2021s-41
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    File URL: https://cirano.qc.ca/files/publications/2021s-41.pdf
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    More about this item

    Keywords

    Socio-demographic change; plant closures; downsizing; manufacturing; city resilience; Changements sociodémographiques; fermetures d'usines; licenciements massifs; industrie manufacturière; résilience des villes;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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