Search

Exploring regional differences in the regional capacity to absorb displacements

PublicationBook chapter
Företagandets villkor, Företagsnedläggning, Ingrid Ros, Kristina Nyström, Regional utveckling, Sysselsättning

Abstract

Extract: Every year there is substantial turbulence in economies with respect to establishing new firms and business closures. Job displacement, i.e. an involuntary loss of jobs due to economic downturns or structural changes affects millions of workers each year. A recent cross-country comparison by the Organisation for Economic Co-operation and Development (OECD) (2013) reveals that displacements affect 2–7 percent of employees every year. In the Swedish case, an average displacement rate of about 2 percent is reported for the time period 2000–2008. According to Tillvaxtanalys (2009)1 more than 100 000 Swedish employees lose their jobs annually due to business closures.2 Through the process of creative destruction, in which old and obsolete firms exit due to the entry of new and more productive firms, the resources used in the exiting firms are reallocated and possibly more efficiently used in the new firms. However, in some cases displaced workers are not able to find a new job, especially if, for example, the employee’s competences do not match the current demands in the labor market. Furthermore, the possibilities to find a new job after a closure may vary substantially depending on the regional conditions in the labor market. It may, for instance, be more difficult to find a new job after a business closure if the unemployment rate in the region is already high or if the displacement is connected to the closure of a locally dominant firm.

Nyström, K., & Viklund Ros, I. (2017). Exploring regional differences in the regional capacity to absorb displacements. In C. Karlsson, M. Andersson, & L. Bjerke (Eds.), Geographies of Growth (pp. 19-47). Cheltenham, UK: Edward Elgar Publishing. DOI: 10.4337/9781785360602.00009


Similar content

Ratio Working Paper No. 341: Recruitment of scarce competences to rural regions: Policies to promote recruitment
Working paperPublication
Nyström, K.
Publication year

2020

Published in

Ratio Working Paper

Abstract

This paper studies the perceived difficulty of recruiting scarce competences to rural regions. Furthermore, the role of policy in facilitating and enhancing recruitment to and better skills matching in rural regions is discussed. Based on a survey targeted to the business sections in Swedish municipalities, the results show that recruitment is perceived to be difficult in both rural and non-rural regions. However, recruitment problems in the public sector are more pronounced in rural municipalities. Nevertheless, recruitment to the public and business sectors are perceived to be equally difficult in rural regions. Both rural municipalities and non-rural municipalities state that the difficulty of recruiting the right skills results in a lack of skills matching and constitutes an obstacle to growth. Which policies can help remedy recruitment problems in rural regions? The pecuniary incentive of writing off student debt is perceived to be the most promising policy, but respondents also believe that non-pecuniary support such as relocation support for accompanying persons and tandem recruitment should be implemented to a greater extent. Finally, the need for flexibility and policies that can be adapted to the regional demand for labour are stressed. This regards for example the adaption of education programmes to local needs and rules and regulations.

En dynamisk arbetsmarknad
BookPublication
Stern, L.
Publication year

2019

Published in
Abstract

Hur påverkas svensk arbetsmarknad av teknikutveckling, tjänstefiering, entreprenörskap och immigration? Hur väl förmår de institutionella villkoren i form av lagar, regler och skatter att hänga med?

Detta är temat för forskningsantologin En dynamisk arbetsmarknad.

En väl fungerande arbetsmarknad förutsätter ändamålsenliga villkor för medarbetare och arbetsgivare i syfte att uppmuntra utveckling, jobbskapande och tillväxt. I en föränderlig värld behöver dessa villkor utvecklas och förbättras.

Femton forskare i ekonomisk historia, företagsekonomi, nationalekonomi, sociologi och statsvetenskap analyserar de viktigaste omvärldsförändringarna och de lagar, regler och skatter som påverkar förutsättningarna på arbetsmarknaden. Studierna bygger på empiriska undersökningar och forskningssammanställningar, och syftet är att bidra till en välgrundad diskussion om framtiden för svensk arbetsmarknad.

Working for an entrepreneur: heaven or hell?
Article (with peer review)Publication
Nyström, K.
Publication year

2021

Abstract

Recruiting employees to an entrepreneurial venture is a challenging task. From the employee’s perspective, accepting a position in an entrepreneurial venture potentially implies considerable uncertainty. This paper provide a literature review and identifies research gaps related to labor mobility of employees into and out of entrepreneurial firms. Who works for an entrepreneur? What are the conditions under which the employees of entrepreneurial firms work? Additionally, labor mobility after an employee works for an entrepreneurial firm is discussed. In conclusion, the quality of the jobs generated by entrepreneurial firms may be questionable (and still relatively unexplored in empirical research), but they are nevertheless important from a labor dynamic perspective. Better understanding about motives to work for an entrepreneur, issues related to job security beyond survival rates, and job quality may contribute to ease the recruitment problems that many entrepreneurial firms struggle with. Furthermore, the relevance and potential pros and cons of working for an entrepreneurial firm in future career paths (entrepreneur or employee) need to be carefully addressed in future research.

Show more