Destruction and Reallocation of Skills Following Large Company Closures

21 Pages Posted: 29 May 2020

See all articles by Jacob Holm

Jacob Holm

Aalborg University Business School

Christian Østergaard

Aalborg University - Department of Business and Management

Thomas Olesen

Copenhagen Business School - Department of Innovation and Organizational Economics

Date Written: March 2017

Abstract

This paper analyzes what happens to redundant skills and workers when large companies close down and whether their skills are destroyed or reallocated. The analysis is based on a combination of qualitative and quantitative data of the closure of four companies. Getting a job in a skill‐related industry or moving to a spinoff firm leads to skill reallocation. Thus, the result depends on regional idiosyncrasies such as industry structure and urbanization. If local policy makers and the owners exert a coordinated effort, it is possible to create success stories of less skill destruction in urban as well as peripheral regions.

Suggested Citation

Holm, Jacob Rubæk and Østergaard, Christian and Olesen, Thomas, Destruction and Reallocation of Skills Following Large Company Closures (March 2017). Journal of Regional Science, Vol. 57, Issue 2, pp. 245-265, 2017, Available at SSRN: https://ssrn.com/abstract=3610319 or http://dx.doi.org/10.1111/jors.12302

Jacob Rubæk Holm (Contact Author)

Aalborg University Business School ( email )

Aalborg, DK-9220
Denmark
+99408247 (Phone)

Christian Østergaard

Aalborg University - Department of Business and Management ( email )

Aalborg, DK-9220
Denmark

Thomas Olesen

Copenhagen Business School - Department of Innovation and Organizational Economics ( email )

Kilevej 14A
Frederiksberg, 2000
Denmark

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