Destruction and reallocation of skills following large company closures

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Abstract

This paper analyzes what happens to redundant skills and workers when large companies close down and whether their skills are destroyed or reallocated. The analysis is based on a combination of qualitative and quantitative data of the closure of four companies. Getting a job in a skill-related industry or moving to a spinoff firm leads to skill reallocation. Thus, the result depends on regional idiosyncrasies such as industry structure and urbanization. If local policy makers and the owners exert a coordinated effort, it is possible to create success stories of less skill destruction in urban as well as peripheral regions.
Original languageEnglish
JournalJournal of Regional Science
Volume57
Issue number2
Pages (from-to)245-265
ISSN0022-4146
DOIs
Publication statusPublished - 9 Mar 2017

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