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The Impact of Firm Closure on Workers’ Future Employment and Earnings

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Publication Year: 2008

Abstract

This paper examines the impact of job loss due to firm closure on workers’ employment and earnings. It uses data from Statistics New Zealand’s Linked Employer-Employee Data (LEED). LEED is an administrative dataset in which the exit of a firm identifier does not always represent a complete firm closure. After selecting all continuing establishments with at least five employees that ceased to operate in LEED between April 2001 and March 2004, information on the flows of clusters of workers from these establishments to other firms was used to classify them according to the likelihood that a complete closure took place. Other exits were classified as partial closures or restructurings.

Citation

Dixon, Sylvia and Steven Stillman. 2008. "The Impact of Firm Closure on Workers' Future Employment and Earnings," LEED Research Report, Statistics New Zealand.

Motu code: MYS0159

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