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Health and Social Effects of Downsizing: A Review

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  • Lakshmi Bose
  • Philip Bohle

Abstract

Extensive organisational downsizing and restructuring has occurred in many countries since the 1980s. The negative consequences for workers forced into unemployment are well recognised. However, a growing body of evidence suggests there are also substantial, though less obvious, negative effects on workers who are retained. These effects may include impaired teamwork and productivity, damaged social networks and diminished social support, negative attitudes to work, elevated work-life conflict, a greater prevalence of negative health behaviours and impaired physical and psychological health. A cluster of behavioural and health effects observed amongst retained workers, described as ‘survivor syndrome’, is characterised by demoralisation, risk aversion, diminished organisational commitment and poorer health. These negative effects may be moderated to some extent by factors such as personality, gender, organisational level and age. A focus on more specific research questions and methodological refinements are likely to enhance future research in this area.

Suggested Citation

  • Lakshmi Bose & Philip Bohle, 2002. "Health and Social Effects of Downsizing: A Review," The Economic and Labour Relations Review, , vol. 13(2), pages 270-287, December.
    • Handle: RePEc:sae:ecolab:v:13:y:2002:i:2:p:270-287
    DOI: 10.1177/103530460201300207
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    References listed on IDEAS

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    1. Kets De Vries, Manfred & Balazs, Katharina, 1996. "The human side of downsizing," European Management Journal, Elsevier, vol. 14(2), pages 111-120, April.
    2. Sarah J. Freeman & Kim S. Cameron, 1993. "Organizational Downsizing: A Convergence and Reorientation Framework," Organization Science, INFORMS, vol. 4(1), pages 10-29, February.
    3. Phillip Toner, 2000. "Changes in Industrial Structure in the Australian Construction Industry: Causes and Implications," The Economic and Labour Relations Review, , vol. 11(2), pages 291-307, December.
    4. Dahl, Svenn-Åge & Nesheim, Torstein, 1998. "Downsizing strategies and institutional environments," Scandinavian Journal of Management, Elsevier, vol. 14(3), pages 239-257, March.
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    Cited by:

    1. Gutierrez, Italo A. & Michaud, Pierre-Carl, 2015. "Employer Downsizing and Older Workers' Health," IZA Discussion Papers 9140, Institute of Labor Economics (IZA).
    2. Italo A. Gutierrez & Pierre-Carl Michaud, 2017. "Whistle While You Work: Job Insecurity and Older Workers’ Mental Health in the United States," CIRANO Working Papers 2017s-21, CIRANO.
    3. Philip Jefferson & Frederic Pryor, 2014. "Does Labor Market Status Influence Self-Assessed Health?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 20(1), pages 45-56, February.

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