Lingering illness or sudden death? Pre-exit employment developments in German establishments
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Lingering illness or sudden death? Pre-exit employment developments in German establishments. / Fackler, Daniel ; Schnabel, Claus; Wagner, Joachim.
Lüneburg : Institut für Volkswirtschaftslehre der Universität Lüneburg, 2012. (University of Lüneburg Working Papers in Economics; No. 258).Research output: Working paper › Working papers
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TY - UNPB
T1 - Lingering illness or sudden death? Pre-exit employment developments in German establishments
AU - Fackler, Daniel
AU - Schnabel, Claus
AU - Wagner, Joachim
PY - 2012
Y1 - 2012
N2 - Using a large administrative dataset for Germany, this paper compares employment developments in exiting and surviving establishments. For both West and East Germany we find a clear “shadow of death” effect reflecting lingering illness: 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. We further show 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. Our results also hold when applying a matching approach.
AB - Using a large administrative dataset for Germany, this paper compares employment developments in exiting and surviving establishments. For both West and East Germany we find a clear “shadow of death” effect reflecting lingering illness: 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. We further show 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. Our results also hold when applying a matching approach.
KW - Economics
KW - firm exits
KW - shadow of death
KW - Germany
M3 - Working papers
T3 - University of Lüneburg Working Papers in Economics
BT - Lingering illness or sudden death? Pre-exit employment developments in German establishments
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -