The cyclical sensitivity of employment in branch and parent plants

Abstract

Clark U.E.G. (1976) The cyclical sensitivity of employment in branch and parent plants, Reg. Studies 10, 293–298. It has often been felt that employment in branch plants is cyclically more sensitive than employment in parent plants. A recent study published by the Department of Trade and Industry indicated that this might not be so but that study had numerous limitations. In the study reported here, employment in plants in the County of Skaraborg in Sweden is examined over a six year period. It is concluded that (1) employment in small branch plants is more cyclically sensitive than employment in small parent plants, (2) employment in large branch plants is less cyclically sensitive than employment in large parent plants, so that (3) the overall sensitivity in any area will depend on the size composition of plants but in the County of Skaraborg at least employment in branch plants was less cyclically sensitive than employment in parent plants.