Locate Your Nearest Exit: Mass Layoffs and Local Labor Market Response / Andrew Foote, Michel Grosz, Ann Huff Stevens.

Format:

Book

Author/Creator:

Foote, Andrew.

Contributor:

National Bureau of Economic Research.

Grosz, Michel.

Stevens, Ann Huff.

Series:

Working Paper Series (National Bureau of Economic Research) no. w21618.

NBER working paper series no. w21618

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Locate Your Nearest Exit

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

Large shocks to local labor markets can cause long-lasting changes to employment, unemployment and the local labor force. This study examines the relationship between mass layoffs and the long-run size of the local labor force. It considers four main channels through which the local labor force may adjust: in-migration, out-migration, retirement, and disability insurance enrollment. We show that these channels account for over half of the labor force reductions following a mass layoff event. By measuring the residual difference between these channels and net labor force change, we also show that labor force non-participation accounted for much of the local labor force response in the period during and after the Great Recession.

Notes:

Print version record

October 2015.