How do mass lay-offs affect regional economies?

Mass lay-offs from firms and plant restructuring occur regularly can have potentially large consequences on places communities. Policy makers may consider supporting firms, in order to prevent mass but at the risk of interfering with economic dynamism, or targeting affected workers, help them transition new employment. Which strategy (firms versus workers) is most appropriate under which circumstances be informed by better understanding nature impact lay-offs. This paper estimates between 2008-18 across small regions (TL3) Europe regional employment productivity. It finds there are persistent negative effects lay-offs, rural more negatively average. In part because differences firm region, its relationship nearby suppliers clients, broader context productivity both positive over longer term.