Knowledge

Keyword: skills

paper

Destruction and reallocation of skills following large company closures

Holm, Jakob Rubæk; Østergaard, Christian Richter; Olesen, Thomas Roslyng

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.

Journal of Regional Science (vol. 57, issue 2) / 2017
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