Ahammer, Alexander; Grübl, Dominik; Winter-Ebmer, Rudolf - 2020
We show that downsizing has substantial externalities on the health of workers who remain in the firm. To this end, we … control group. Based on high-quality administrative data, we find evidence that downsizing has persistent effects on mental … health externalities due to downsizing imply non-negligible cost for firms, and that wage cuts may have similar effects. …