Redundancy duration and business alteration – Consequences of establishment closures in Sweden

This thesis follows and analyses what happens to individuals who work at establishments that are closed down. I examine if and when the displaced workers are re-employed. Furthermore, I examine to what extent individuals have moved, changed industry of work, have started to commute or have become self-employed. Additionally I examine, if the workers become self- employed after displacement, how many of them that does so within the same industry of work as they initially got displaced from. A unique longitudinal matched employer-employee data incorporating all firms, establishments and their employees in Sweden between the years 1997-2008 is used. All individuals between 25 and 55 years of age at the time of displacement that were displaced between 2000 and 2003 due to establishment closures are followed over a five-year period of time. Consistent with previous empirical research, it is shown that an absolute majority of the workers that are displaced one given year also recovers within that same year. The results moreover express that the longer the displaced workers are out of employment, the larger is the willingness to change industry of work, change municipality of living or move into self-employment. The willingness to commute is however found to be fairly constant over time. Finally, I find that those who become self-employed to a greater extent start business in other industries than they were displaced from as time passes.

Mastersuppsats: ”Redundancy duration and business alteration – Consequences of establishment closures in Sweden”, Cecilia Magnergård (KTH 2013).

Cecilia Magnergård kartlägger i uppsatsen effekterna för anställda vid ett företags nedläggning. Kristina Nyström har varit handledare och arbetet ingår i forskningsprojektet Kompetens för tillväxt, som bedrivs av Ratio med finansiellt stöd av bl a Vinnova.

Uppsatsen följer och analyserar vad som händer med personer som arbetar i organisationer som läggs ner. Författaren undersöker om och när de återanställs. Dessutom undersöker författaren i vilken utsträckning individer har flyttat, bytt bransch eller yrke, har börjat pendla eller har blivit egenföretagare.