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
VIRTA submission year: 2024
Preliminary JUFO rating: 1