The health externalities of downsizing

Arbeitspapier

We show that downsizing has substantial externalities on the health of workers who remain in the firm. To this end, we study mass layoff (ML) survivors in Austria, using workers who survive a ML themselves, but a few years in the future, as a control group. Based on highquality administrative data, we find evidence that downsizing has persistent effects on mental and physical health, and that these effects can be explained by workers fearing for their own jobs. We also show that health externalities due to downsizing imply non-negligible cost for firms, and that wage cuts may have similar effects.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IHS Working Paper ; No. 26

Classification and Topics

• Classification: Wirtschaft ; Labor Turnover; Vacancies; Layoffs ; Health Behavior ; Labor Demand
• Subject: Downsizing ; mass layoffs ; health ; job insecurity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ahammer, Alexander ; Grübl, Dominik ; Winter-Ebmer, Rudolf
• Event: Veröffentlichung
• (who): Institut für Höhere Studien - Institute for Advanced Studies (IHS)
• (where): Vienna
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/228664
• Last update: 10.03.2025, 11:41 AM CET