A1 Journal article (refereed)
Lost mind, lost job? Unequal effects of corporate downsizings on employees (2024)

Böckerman, P., Haapanen, M., & Johansson, E. (2024). Lost mind, lost job? Unequal effects of corporate downsizings on employees. German Journal of Human Resource Management, OnlineFirst. https://doi.org/10.1177/23970022241244988

JYU authors or editors

Publication details

All authors or editors: Böckerman, Petri; Haapanen, Mika; Johansson, Edvard

Journal or series: German Journal of Human Resource Management

ISSN: 2397-0022

eISSN: 2397-0030

Publication year: 2024

Publication date: 07/04/2024

Volume: OnlineFirst

Publisher: SAGE Publications

Publication country: United Kingdom

Publication language: English

DOI: https://doi.org/10.1177/23970022241244988

Publication open access: Openly available

Publication channel open access: Partially open access channel

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/94377

Abstract

We investigate whether employees with mental health disorders are likelier to be laid off during corporate downsizings. Our study uses nationwide administrative data from all private sector firms and their employees in Finland from 2001 to 2017 and focuses on firms with at least 20 employees that reduced their workforce by at least 20% over two consecutive years. We analyse whether the employees who were laid off had more diagnosed mental health disorders prior to downsizing compared than those who were not laid off. Controlling for employee characteristics, our baseline results show that a mental health disorder diagnosis in the 3 years before downsizing increases the likelihood of being laid off by about 6 percentage points. This highlights the increased vulnerability of employees with mental health disorders in mass layoff situations.

Keywords: health; mental well-being; mental health; unemployment

Free keywords: corporate downsizing; health; job displacement; mass layoff; mental health; unemployment

Contributing organizations

Ministry reporting: Yes

Preliminary JUFO rating: 1