Structural adjustment, mass lay-offs and employment reallocation

This report investigates the factors associated with the intensity of “mass lay-offs” across countries and industries, controlling for the dynamics of overall employment. The results suggest that some important drivers of structural transformation (e.g. digitalisation and globalisation) are not as clearly linked to mass lay-offs as one might expect, once their impact on overall job destruction is accounted for. The report also investigates the re-employability prospects of workers in sectors at high risk of mass lay-offs. Finally, the paper draws implications for different areas of policymaking, from labour market policy to industrial policy and also trade policy.