Regional effects of mass layoffs in Finland

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi
dc.contributor.advisor Bagues, Manuel Nurmi, Eero 2018-05-08T07:28:17Z 2018-05-08T07:28:17Z 2018
dc.description.abstract In my thesis, I study the causal effect of mass layoffs on local labor markets in Finland in 1989-2013. The analysis is conducted by comparing developments over time between commuting zones (CZ) that experience a mass layoff event and those that do not, attributing the difference to the layoff events. I focus on the effects on regional employment, income, population, unemployment and non-employment. The topic is highly relevant from the point of view understanding the dynamics of local labor markets. Mass layoffs affect not only the individuals who lose their jobs, but potentially also people working in other firms operating in the same area through negative spillover effects, of which there is evidence in empirical literature. Understanding regional effects of mass layoffs is also important for designing public policy, since governments spend considerable financial resources on regional policies that aim at supporting struggling regions. I find that in the layoff year, a mass layoff of 1% of CZ population leads to a 1.4% decline in employment that translates mainly to an increase in unemployment, while only a 0.1% of population migrates to other CZs. The effect on CZ-level income is also limited. In the medium term, employment appears to recover somewhat, while population and income decline further. Among those that stay in the layoff CZ, the share of unemployed improves relative to the initial decline, while the share of inactive population gradually increases. en
dc.format.extent 33
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Regional effects of mass layoffs in Finland en
dc.type G2 Pro gradu, diplomityö fi Kauppakorkeakoulu fi School of Business en
dc.contributor.department Taloustieteen laitos fi
dc.subject.keyword mass layoff en
dc.subject.keyword local labor markets en
dc.subject.keyword regional effects en
dc.subject.keyword spillover effects en
dc.identifier.urn URN:NBN:fi:aalto-201805082112
dc.type.ontasot Master's thesis en
dc.type.ontasot Maisterin opinnäyte fi
dc.programme Economics en
dc.subject.helecon taloustieteet fi
dc.subject.helecon työmarkkinat fi
dc.subject.helecon irtisanominen fi
dc.subject.helecon aluetutkimus fi
dc.subject.helecon talousmaantiede fi
dc.subject.helecon Suomi fi
dc.ethesisid 17097
dc.location P1 I fi

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