The crucial role of insolvency law in job creation and preservation Andrés F. MartínezAurelio Gurrea-MartínezHarish Natarajan July 01, 2025 This page in: English © 2025 The World Bank Group

https://blogs.worldbank.org/en/psd/the-crucial-role-of-insolvency-law-in-job-creation-and-preservat When companies face financial trouble, potential job losses can be a major risk for people and—depending on the size of the company or industry in trouble—a risk to local or national economies. An efficient insolvency system can mitigate this risk while contributing to the creation of more and better jobs. As jobs are the most critical tool in fighting poverty, a better understanding of the effects of insolvency law on employment is vital for development work. © 2025 The World Bank Group