Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 276: Regional resilience to displacement: Evidence from Panel and Quantile regressions

Kristina Nyström ()
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Kristina Nyström: The Ratio Institute The Royal Institute of Technology, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

Abstract: This paper contributes to knowledge about regional resilience to displacement and examines the extent to which the characteristics of the i) regional closures, ii) individuals in a region, iii) regional industry, iv) regional economy and v) regional attractiveness influence the re-employment of displaced employees. The results indicate that regions where the average size of establishment closures is large or the regional displacement rate is high exhibit increased resilience in terms of re-employing displaced employees in the same region. Unrelated and related industrial variety are positively related to resilience to displacement in regions with low re-employment capacities, whereas there is some evidence that regional attractiveness is positively related to resilience in regions with a good ability to re-employ displaced employees.

Keywords: Displacements; regional resilience; exit. Labor mobility; regional development; regional attractiveness

JEL-codes: J60; R10

31 pages, November 21, 2016

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