Following the sudden and unprecedented collapse of Icelandic banks during the recent economic recession, 20 per cent of bank employees were laid off. This nation-wide study compared the health and well-being of university-educated stayers and leavers following the downsizing of the banks and took into account labour market trajectories among the leavers following downsizing and job insecurity among the stayers. Results indicate a clear difference for the stayers and leavers on all outcomes of health and well-being, indicating that stayers fare worse than leavers in the early aftermath of downsizing. Overall, those male and female leavers who had found steady employment and male leavers with temporary employment fared the best of all groups. Of all the groups in this study, insecure stayers are the group of employees that experiences the lowest well-being and worst health.
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