Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295771 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16748
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We develop a theory of non-monetary costs incurred by CEOs when deciding about layoffs and test its predictions on French data. Our results support the idea that, being embedded in their social environment, CEOs find it more difficult to fire employees closer to their own workplace. This effect is stronger whenever social interactions are less anonymous in the CEOs' local environment. It is weaker when CEOs live further away from where they work, because of limited exposure to local discontent.
Subjects: 
CEO
non-monetary costs
layoffs
social embeddedness
JEL: 
J63
M12
M51
R12
Document Type: 
Working Paper

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