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- Title
Structural change in the ICT sector: Where have former Nokia employees ended up?
- Authors
Ali-Yrkkö, Jyrki; Kuosmanen, Natalia; Pajarinen, Mika
- Abstract
This study empirically examines the reemployment of employees displaced from a high-tech firm. Since 2008, the plummeting market share of Nokia, the world's largest mobile phone manufacturer at the time, has resulted in massive layoffs and the downsizing of its workforce. We analyze the labor market status of more than twenty thousand former Nokia employees in Finland who left the company during 2009-2014. Using a unique matched employee-employer dataset, we identify the key factors associated with the probability of reemployment. Our findings show that the majority of former Nokia employees were successful in becoming reemployed. According to the latest available data from 2017, more than three-quarters of these employees found new jobs. Reemployment was often found in the service sector. Employees with higher education levels and those who had held senior positions at Nokia were more successful in finding new jobs than others. An additional year of education is positively associated with the probability of reemployment in the third year after displacement. The average difference in the estimated probability of employment of the senior staff members and other former Nokia employees one year after exit was 22 percentage points in favor of the senior staff members.
- Subjects
FINLAND; NOKIA Corp.; EMPLOYMENT reentry; INDUSTRIAL relations; INFORMATION &; communication technologies
- Publication
Journal of the Finnish Economic Association, 2022, Vol 3, Issue 1, p1
- ISSN
2736-867X
- Publication type
Article