Lingering illness or sudden death? Pre-exit employment developments in German establishments

Fackler D, Schnabel C, Wagner J (2014)

Publication Language: English

Publication Type: Journal article

Publication year: 2014

Journal

Industrial and Corporate Change Oxford University Press (OUP): Policy E - Oxford Open Option D

Publisher: Oxford University Press (OUP): Policy E - Oxford Open Option D

Book Volume: 23

Pages Range: 1121-1140

Journal Issue: 4

DOI: 10.1093/icc/dtt041

Abstract

Using a large administrative data set for Germany, this article compares employment developments in exiting and surviving establishments. Applying a matching approach, we find a clear “shadow of death” effect reflecting lingering illness: in both West and East Germany establishments shrink dramatically already several years before closure, employment growth rates differ strongly between exiting and surviving establishments, and this difference becomes stronger as exit approaches. Moreover, we provide first evidence that prior to exit the workforce becomes on average more skilled, more female, and older in exiting compared to surviving establishments. These effects are more clearly visible in West than in East Germany.

Authors with CRIS profile

Daniel Fackler Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik Claus Schnabel Lehrstuhl für Volkswirtschaftslehre, insbesondere Arbeitsmarkt- und Regionalpolitik

Related research project(s)

Betriebsschließungen in Deutschland: Umfang, Verlauf und Einflussfaktoren Feb. 1, 2011 - March 30, 2013

Involved external institutions

Leuphana Universität Lüneburg DE Germany (DE)

How to cite

APA:

Fackler, D., Schnabel, C., & Wagner, J. (2014). Lingering illness or sudden death? Pre-exit employment developments in German establishments. Industrial and Corporate Change, 23(4), 1121-1140. https://dx.doi.org/10.1093/icc/dtt041

MLA:

Fackler, Daniel, Claus Schnabel, and Joachim Wagner. "Lingering illness or sudden death? Pre-exit employment developments in German establishments." Industrial and Corporate Change 23.4 (2014): 1121-1140.

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