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 … control group. Based on highquality administrative data, we find evidence that downsizing has persistent effects on mental and … externalities due to downsizing imply non-negligible cost for firms, and that wage cuts may have similar effects. …