Destruction and Reallocation of Skills Following Large Company Closures

Jacob Rubæk Holm, Christian Richter Østergaard, Thomas Roslyng Olesen

    Research output: Contribution to journalJournal articleResearchpeer-review

    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
    Number of pages21
    ISSN0022-4146
    DOIs
    Publication statusPublished - Mar 2017

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