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The Hidden Costs of Downsizing

Bibliographic Data

ID9718538
AuthorsFrank Drzensky (Goethe University Frankfurt), Matthias Heinz (0000-0003-3690-926X, University of Cologne)
Year2016
Volume126
Issue598
Pages2324-2341
Publication date2016-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12216
OpenAlexW2156944619
LanguageEN
Citations received6
References cited42

We analyse whether a principal’s decision to lay off an agent affects the performance of the surviving agents in a laboratory experiment. We find that agents reduce their performance by 43% as a response to the lay‐off decision. Heterogeneity in principals’ decisions can largely be explained by different beliefs about how agents react to lay‐offs

Business · Computer Science · Employment and Welfare Studies · Labor market dynamics and wage inequality · Organizational Downsizing and Restructuring

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Unique citing works6
Citations per year0,86
Citation span2019 - 2026 (8)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 6

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