The Timing of Mass Layoff Episodes: Evidence from U.S. Microdata

34 Pages Posted: 7 Sep 2017

See all articles by Alison Weingarden

Alison Weingarden

Board of Governors of the Federal Reserve System

Date Written: 2017-08-22

Abstract

This paper studies employment decisions at U.S. companies over the 2007-2012 period, during and after the Great Recession. To this end, I build a panel dataset that matches publicly-listed companies' financial reports to their announced layoff episodes. Using limited dependent variable regressions, I find that layoffs respond to accumulated changes in a company's financial conditions. While recent financial changes have the largest impacts on layoff propensities, financial changes over at least four previous quarters appear to have additional marginal effects.

Keywords: Downsizing, Employment adjustment costs

JEL Classification: J21, J63, E24

Suggested Citation

Weingarden, Alison, The Timing of Mass Layoff Episodes: Evidence from U.S. Microdata (2017-08-22). FEDS Working Paper No. 2017-088, Available at SSRN: https://ssrn.com/abstract=3029738 or http://dx.doi.org/10.17016/FEDS.2017.088

Alison Weingarden (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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