The de-industrialisation of the UK economy caused by globalised international markets, advancements in technology and production with changing consumer demands have made much of what was ‘traditional’ manufacturing redundant; this has led to industrial restructuring or even collapse, resulting in mass job redundancies. Market and industrial pressures have intensified since the late 1990s, culminating in the symbolic collapse of MG Rover in 2005 in addition to other key producers in the West Midlands, which represented the end of mass automotive production in the region (Donnelly et al. 2012). This came alongside various geographical, political and economic factors, including the restructuring of regional development agencies, prolonged industrial decline and a period of national economic recession, which presented challenges for any recovery. This thesis examines more precisely the closure of the commercial vehicle manufacturer LDV in 2009, once a part of the larger conglomerate British Leyland. The closure further reinforced the decline in UK automotive manufacturing until that point. The research involves the corporate collapse of LDV and the local government reaction to the closure and the following re-employment pathways of the redundant LDV workforce. The research continues the discussion of plant closures and the issues that redundant workers face when engaged in the labour market during economic recession. In particular, the thesis contribution employs a qualitative approach to examine the difficulties faced by the office tier, or ‘white collar’, workers who possess relatively high skills and who regarded as flexible and less vulnerable workers within the labour market. Yet this research exposes that highly skilled specialist workers are themselves also subject to unique issues when adjusting to the labour market. This topic is covered through the concept of worker trajectories: the research illustrates the unique employability issues and job precariousness that highly skilled workers can experience. The research concludes that the ability of highly skilled redundant workers to adapt effectively requires local job recovery strategies to implement short- and long-term policies with an emphasis on better job search and network development for individuals to sustain a resilient economy, and to mitigate the effects of plant closure upon redundant workers and maintain high skills within the region.

<p>Essay 1: Hurst and Lusardi (2004) use higher-order polynomials in wealth in estimating the relationship with entrepreneurship. They find evidence conflicting with the existence of extensive liquidity constraints in the United States. In this paper, their approach is replicated on Swedish data. A positive relationship between wealth and entrepreneurship is found, which supports the liquidity constraints hypothesis. Alternative methods attempting to handle the endogeneity problem and distinguish between absolute decreasing risk aversion and liquidity constraints give further support to the hypothesis. The paper suggests that there exist liquidity constraints in Sweden, which are possibly more extensive than in the United States.</p><p>Essay 2: Displacement is expected to decrease the reservation wage of self-employment by decreasing earnings in paid employment and increasing the probability of unemployment. This paper examines whether displacement increases the probability of self-employment using propensity score matching on Swedish register-based data. The data include all individuals displaced due to plant closures in 1987 and 1988, and a random sample of 200,000 employed individuals. The results suggest that displacement almost doubles the probability of entering self-employment the year after displacement. A sub-sample analysis indicates that individuals with a potentially worse position on the labor market react more strongly to displacement in terms of entering self-employment.</p><p>Essay 3: A large literature has studied the effect of displacement on labor market outcomes in general, but no one has evaluated how the displaced succeed as self-employed. This paper studies how the survival of the business is affected by displacement in connection to entry, using a discrete-time proportional hazard model on a matched sample of displaced and non-displaced individuals. The main result of the paper is that, as a consequence of previous displacement, the probability of switching from self-employment to paid employment decreases and the probability of switching to unemployment is unaffected.</p>

Essay 1: Hurst and Lusardi (2004) use higher-order polynomials in wealth in estimating the relationship with entrepreneurship. They find evidence conflicting with the existence of extensive liquidity constraints in the United States. In this paper, their approach is replicated on Swedish data. A positive relationship between wealth and entrepreneurship is found, which supports the liquidity constraints hypothesis. Alternative methods attempting to handle the endogeneity problem and distinguish between absolute decreasing risk aversion and liquidity constraints give further support to the hypothesis. The paper suggests that there exist liquidity constraints in Sweden, which are possibly more extensive than in the United States. Essay 2: Displacement is expected to decrease the reservation wage of self-employment by decreasing earnings in paid employment and increasing the probability of unemployment. This paper examines whether displacement increases the probability of self-employment using propensity score matching on Swedish register-based data. The data include all individuals displaced due to plant closures in 1987 and 1988, and a random sample of 200,000 employed individuals. The results suggest that displacement almost doubles the probability of entering self-employment the year after displacement. A sub-sample analysis indicates that individuals with a potentially worse position on the labor market react more strongly to displacement in terms of entering self-employment. Essay 3: A large literature has studied the effect of displacement on labor market outcomes in general, but no one has evaluated how the displaced succeed as self-employed. This paper studies how the survival of the business is affected by displacement in connection to entry, using a discrete-time proportional hazard model on a matched sample of displaced and non-displaced individuals. The main result of the paper is that, as a consequence of previous displacement, the probability of switching from self-employment to paid employment decreases and the probability of switching to unemployment is unaffected.

Major organizational changes are often connected with a variety of negative outcomes for both employees and the organization alike. As a contrast to this, organizational deaths have instead been associated with increased productivity and motivation to perform, despite certainty of job loss. These results have been regarded as counter-intuitive, since employment and job security are regarded as a foundation for work motivation. Consequently, this thesis aims at investigating the motivational aspects of organizational deaths in terms of change in motivation as individuals adjust to changing realities. The thesis rests on three empirical studies.The first study's results showed (contrary to theoretical postulations) that goal setting was able to influence employees' in-role and extra-role performance, job-induced tension, commitment to the closure, and job satisfaction. The second study showed that organizational productivity, efficiency, performance, motivation and psychological climate increased for both blue-collar and white-collar employees'. The results of the third study lend support to the anecdotal reports that high-performers stop performing during organizational deaths. However, this study also found that low-performers perceiving low justice increased their effort which may show that they have a personal gain in performing (e.g., positive self-perception). The results of the empirical studies support the notion that organizational productivity increases along with employees' motivation to perform. Finally, a common pattern in the data was that most positive variables increased and the negative variables decreased. These results are explained by the adoption of new goals, which creates horizontal coherence (harmony) among goals, which gives rise to goal proximity (motivation increases due to moving closer to the goal). / At the time of the doctoral defense, the following papers were unpublished and had a status as follows: Paper 1: In press. Paper 2: Submitted. Paper 3: Submitted.

Essay 1: Several countries practice a system where laymen, who lack legal education, participate in the judicial decision making. Yet, little is known about their potential influence on the court rulings. In Sweden lay judges (nämndemän) are affiliated with the political parties and appointed in proportion to political party representation in the last local elections. This paper investigates the influence of their partisan belonging when ruling in asylum appeals in the Migration Courts, where laymen are effectively randomly assigned to cases. The results show that the approval rate is affected by the policy position of the laymen's political parties. In particular, asylum appeals are more likely to be rejected when laymen from the anti-immigrant party the Swedish Democrats participate, and less likely to be rejected when laymen from the Left Party, the Christian Democrats or the Green Party participate. This indicates that asylum seekers do not receive an impartial trial, and raises concerns that laymen in the courts can compromise the legal security in general. / Essay 2: Although economic circumstances have been argued to be a major determining factor of attitudes to redistribution, there is little well identified evidence at the individual level. Utilizing a unique dataset, with detailed individual information, provides new and convincing evidence on the link between economic circumstances and demand for redistribution (in the form of social benefits). The Swedish National Election Studies are constructed as a rotating survey panel, which makes it possible to estimate the causal effect of economic changes. The empirical analysis shows that individuals who experience a job loss become considerably more supportive of redistribution. Yet, attitudes to redistribution return to their initial level as economic prospects improve, suggesting that the effect is only temporary. Although a job loss also changes attitudes to the political parties, the probability to vote for the left-wing is not affected. / Essay 3: A well-functioning labor market is characterized by job reallocations, but the individual costs can be vast. We examine if individual's ability to cope with such adjustments depends on their cognitive and non-cognitive skills (measured by the enlistment tests). Since selection into unemployment is a function of skills, we solve the endogeneity of a job loss by using the exogenous labor market shock provided by the military base closures in Sweden following the end of the Cold War. We find, first, that, on average, labor earnings decrease and unemployment and labor-related benefits increase for those affected. Second, there are heterogeneous treatment effects in terms of unemployment; the treated individuals with high non-cognitive and cognitive skills face lower unemployment effects than the treated individuals with low non-cognitive and cognitive skills.