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Impact study of insolvency procedures on careers of the employees targeted by their company's judicial review and liquidation

"French trade laws confer a specific status to companies risking bankruptcy. From the moment a termination order is pronounced, and in line with insolvency procedures (receivership, safeguard plan or liquidation), they are handled by an administrator or an independent court-appointed agent, tasked with: organizing the recovery of the company, the relations with its creditors, and if need be the liquidation of its assets. Insolvency procedures are in this case judicial means of Schumpeterian destructive creation asset and employment reallocation increasing the overall productivity. The lack of data explains why up to now, no thorough econometric analysis has been carried out on insolvency procedures, and how they can affect careers (more specifically the following dilemma: Is it worth it for one’s career to stay for many months in an ailing company under judicial review, or is it preferable to leave the ailing company earlier, and benefit from the existing support schemes for the unemployed, and potentially use the vocational training thus available? "