Creative destruction, destructive destruction and labour market dynamics
In times of economic turmoil, it’s easy to focus on recurrent news of contracting industries and plants, and stories of how crises may negatively affect workers and the long-term economic development of regions. But what are the long-term effects of crises for individuals, plants and regions? Using unique Swedish longitudinal micro-data that matches workers with firms and regions from the 1960s until today, this project analyzes which mechanisms lead to a ‘creative destruction’ and which lead to ‘destructive destruction’. The project thus deepens our understanding about which individuals, firms and regions that are able to benefit from qualitative economic change, and under which circumstances this is the case.