Time of displacement as a predictor of re-employment

Abstract

Previous studies addressing plant closures suggest that the reemployment of workers varies according to the economic cycle at the time of displacement. However, there are few studies on the selectivity of labor demand and reemployment in the long run. This study applied trajectory analyses in exploring the 7-year labor market attachment of workers displaced in plant closures in Finland during the recession in 1992, the boom in 1997, and slow economic growth in 2003. Results of the multinomial logistic regression analyses indicated that those displaced during the recession assumed the trajectory of strong employment significantly less commonly than those displaced under better economic conditions. Moreover, a significant interaction between age and year of displacement was found, whereas the gender, education-, and industryrelated risks turned out to be timeindependent. The study contributes to the sociological understanding of economic restructuring and how different times frame the individual's opportunities to gain re-employment.