Big plant closures and local employment

Jofre‐Monseny, Jordi; Sánchez-Vidal, María; Viladecans‐Marsal, Elisabet

doi:10.1093/jeg/lbx026

Cited by 19 publications

(13 citation statements)

References 22 publications

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“…The existing literature on this topic provides mixed evidence. Jofre-Monseny et al (2018) find that the closure of large manufacturing plants has a positive impact on the local industry. Shoag & Veuger (2018) focus on the closure of retail chains and find a negative impact on employment and survival of nearby businesses.…”

Section: Historical Contextmentioning

confidence: 87%

Are clusters resilient? Evidence from Canadian textile industries

Behrens

Boualam

Martin

2019

Journal of Economic Geography

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We investigate whether plants inside and outside geographic clusters differ in their resilience to adverse economic shocks. To this end, we develop a bottom-up procedure to delimit clusters using Canadian geo-coded plant-level data. Focussing on the textile and clothing industries and exploiting the series of dramatic changes faced by that sector between 2001 and 2013, we find no evidence that plants in clusters are more resilient than plants outside clusters: they are neither less likely to die nor more likely to adapt by switching their main line of business. However, conditional on switching, plants in urbanized clusters are more likely to transition to services.

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Section: Historical Contextmentioning

confidence: 87%

Are clusters resilient? Evidence from Canadian textile industries

Behrens

Boualam

Martin

2019

Journal of Economic Geography

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“…Voters may believe governments can keep firms onshore by providing subsidies and/or tax breaks. Elected leaders often espouse this view, using the threat of offshoring to justify generous subsidies and tax incentives for firms (Jofre-Monseny, Sánchez-Vidal and Viladecans-Marsal 2018). Voters may observe governments providing firms with economic incentives and firms subsequently deciding to stay in the country.…”

Section: Connecting Offshoring To Votingmentioning

confidence: 99%

Incumbents Beware: The Impact of Offshoring on Elections

Rickard

2021

Brit. J. Polit. Sci.

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How does globalization affect politics? One of the most controversial aspects of globalization is offshoring, when manufacturing operations and business functions move abroad. Although voters generally dislike offshoring, it remains unclear how moving jobs abroad impacts democratic elections. Using a difference-in-differences estimation strategy, the author finds that incumbent government parties lose more votes in municipalities where a local plant moved production abroad between elections than in municipalities that did not experience such an event. The result holds across various time periods, different incumbent parties and diverse types of elections. In both national and regional elections, voters punish incumbent government parties when a local firm moves production abroad. Incumbent parties' vote shares fall as the number of jobs lost due to offshoring increases. In multiparty governments, voters disproportionately punish the largest coalition party for offshoring. The results of an original survey administered in Spain verify the importance of offshoring for voters' retrospective evaluations of incumbents.

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“…Over the past five years there has been substantial growth in the use of administrative data setssometimes created as linked data sets from across a number of government portfolios (Rafi, 2017). These new forms of analysis have shed a new light on the size and direction of the spillover effects associated with plant closure (Gathman, Helm, & Schonberg, 2014Jofre-Monseny, Sanchez-Vidal, & Viladecans-Marsal, 2017), the efficiency of government expenditures in ameliorating the impacts of redundancy (Rafi, 2017), and the advantages and disadvantages associated with occupational mobility post-redundancy (Eriksson, Hane-Weijman, & Henning, 2018). However, as retrospective investigations they offer limited insights into the emerging world of workor non-workfor displaced workers.…”

Section: Towards a New Understanding Of The Impacts Of Plant Closurementioning

confidence: 99%

The urban and regional impacts of plant closures: new methods and perspectives

Beer

Weller

Barnes

et al. 2019

Regional Studies, Regional Science

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Work on large-scale plant closures has provided a rich vein of scholarship and academic debate. This paper articulates a new set of methods and concepts for understanding how large-scale redundancies associated with the closure of manufacturing plants affects society and the economy at the local, regional and national scales. It posits the need for a more comprehensive exercise in data collection and experimentation with previously unused methods, including the application of discrete-choice experiments in order to understand better the choice and decision-making frameworks adopted by affected workers. The paper argues there is a need to integrate community-wide policy responses into the core of the analyses.

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Big plant closures and local employment

Cited by 19 publications

References 22 publications

Are clusters resilient? Evidence from Canadian textile industries

Are clusters resilient? Evidence from Canadian textile industries

Incumbents Beware: The Impact of Offshoring on Elections

The urban and regional impacts of plant closures: new methods and perspectives

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