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This paper uses data from the European Restructuring Monitor database of Eurofound and OECD regional statistics to estimate the average effect of mass lay-offs on the employment and productivity, as measured by industrial GVA per worker, of NUTS3/TL3 regions over the period 2010-18 in seven European countries. Using a staggered difference-in-differences estimator, the paper finds that a mass lay-off reduces regional employment by around 2% to 6%, depending on the threshold of included mass lay-offs. Variation in outcomes depends on the types of regions, and the sector and cause of the mass lay-off. Mass lay-offs in manufacturing due to de-location have the strongest negative employment effects. Little effects on regional productivity suggest that mass layoffs occer equally often among high and low productivity firms.
