TY  - RPRT
        AU  - Pfann, Gerard A.
        TI  - Downsizing
        PY  - 2001/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 307
        UR  - https://www.iza.org/publications/dp307
        AB  - Optimal layoff rules in closed form are derived for all workers in a firm that downsizes under uncertainty and faces heterogeneous firing costs. The theoretical model predicts that the firm displaces workers with low firing costs, low expected future productivity growth, and low layoff option values. The empirical analysis based on personnel records from a Dutch aircraft building company that went bankrupt in 1996 shows that workers with high uncertainty associated with higher than average expected productivity growth are most likely to be retained.
        KW  - heterogeneity
KW  - uncertainty
KW  - firing costs
KW  - Layoff rules
        ER  -