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.
Holm, J. R., Østergaard, C. R., & Roslyng Olesen, T. (2017). Destruction and Reallocation of Skills Following Large Company Closures. Journal of Regional Science, 57(2), 245-265. https://doi.org/10.1111/jors.12302