Ahammer, Alexander; Grübl, Dominik; Winter-Ebmer, Rudolf - 2021
We show that downsizing has substantial externalities on the health of workers who remain in the firm. To this end, we … health externalities due to downsizing imply non-negligible cost for firms, and that wage cuts may have similar effects … and physical health, and that these effects can be explained by workers fearing for their own jobs. We also show that …