Understanding firm’s decision towards workforce layoffs during Covid-19 outbreak in India
By: Ali, Jabir and Ansari, Fariya Akbar
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Material type: 
BookPublisher: The Indian Journal of Labour Economics Description: 68(4), Oct-Dec, 2025: p.1259-1278.Subject(s): Layoffs, Business operations, Business obstacles, Covid-19, India
In:
The Indian Journal of Labour EconomicsSummary: This paper analyses the determinants of firm’s decision towards workforce layoffs during the COVID-19 outbreak in India. The study is based on the World Bank Enterprise Survey data of 9367 firms. Simple analysis tools such as the chi-square test and regression estimates are utilised to analyse the data. The analysis indicates that 9.2% of firms have reported layoffs, while 49.1% of firms reported no change, and 41.7% reported new hiring amid the coronavirus outbreaks. There is a significant association between firm’s decisions towards layoffs during the COVID-19 outbreak and the basic and operational characteristics of firms. The marginal effect analysis identifies a set of determining factors of firms’ layoff decisions comprising enterprise characteristics (gender, size, and ownership), operational indicators (credit, quality certification, export orientation, green practices, selling on credit, working capital by retained earnings, and capacity utilisation) and business obstacles (access to resources and business regulations). This paper provides a unique theoretical and practical contribution by creating an empirical understanding of factors affecting the firms’ responses to workforce layoffs due to the COVID-19 pandemic.- Reproduced
https://link.springer.com/article/10.1007/s41027-025-00595-9
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 68(4), Oct-Dec, 2025: p.1259-1278 | Available | AR138510 |
This paper analyses the determinants of firm’s decision towards workforce layoffs during the COVID-19 outbreak in India. The study is based on the World Bank Enterprise Survey data of 9367 firms. Simple analysis tools such as the chi-square test and regression estimates are utilised to analyse the data. The analysis indicates that 9.2% of firms have reported layoffs, while 49.1% of firms reported no change, and 41.7% reported new hiring amid the coronavirus outbreaks. There is a significant association between firm’s decisions towards layoffs during the COVID-19 outbreak and the basic and operational characteristics of firms. The marginal effect analysis identifies a set of determining factors of firms’ layoff decisions comprising enterprise characteristics (gender, size, and ownership), operational indicators (credit, quality certification, export orientation, green practices, selling on credit, working capital by retained earnings, and capacity utilisation) and business obstacles (access to resources and business regulations). This paper provides a unique theoretical and practical contribution by creating an empirical understanding of factors affecting the firms’ responses to workforce layoffs due to the COVID-19 pandemic.- Reproduced
https://link.springer.com/article/10.1007/s41027-025-00595-9
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