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The effect of advance notification of plant closings on unemployment

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Author Info

  • John T. Addison
  • Pedro Portugal

Abstract

Using data from the 1984 Displaced Worker Survey, the authors model the determinants of time without work following job displacement for a large sample of workers laid off because of plant shutdowns between 1979 and 1984. The major focus of the paper is on the role of advance notification in mitigating unemployment. The estimating procedure accommodates right censored observations stemming from continuing or open-ended spells of unemployment. Advance notification is found to have significantly reduced the duration of unemployment of those notified workers who did not draw unemployment insurance benefits and, in particular, of those who left the plant prior to termination. Advance notice had much less effect on the time without work of notified workers whose spell length of unemployment was long enough for them to collect unemployment insurance benefits. (Abstract courtesy JSTOR.)

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Bibliographic Info

Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 41 (1987)
Issue (Month): 1 (October)
Pages: 3-16

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Handle: RePEc:ilr:articl:v:41:y:1987:i:1:p:3-16

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Cited by:
  1. Janet Netz & Jon Haveman, 1999. "All In The Family: Family, Income, And Labor Force Attachment," Feminist Economics, Taylor & Francis Journals, vol. 5(3), pages 85-106.
  2. Pfann, Gerard A., 2001. "Options to quit," Economics Letters, Elsevier, vol. 70(2), pages 259-265, February.
  3. Schwerdt, Guido, 2011. "Labor turnover before plant closure: "Leaving the sinking ship" vs. "Captain throwing ballast overboard"," Labour Economics, Elsevier, vol. 18(1), pages 93-101, January.
  4. Audra Bowlus & Lars Vilhuber, 2001. "Displaced Workers, Early Leavers, and Re-employment Wages," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20015, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  5. Kahn, Lawrence M., 2012. "Temporary jobs and job search effort in Europe," Labour Economics, Elsevier, vol. 19(1), pages 113-128.
  6. Boman, Anders, 2007. "Does Migration Pay? Earnings effects from geographic mobility following job displacement," Working Papers in Economics 244, University of Gothenburg, Department of Economics, revised 31 Aug 2007.
  7. Abbring, J.H. & Berg, G. van den & Gautier, P.A. & Lomwel, A.G.C. van & Ours, J.C. van & Ruhm, C.J., 1998. "Displaced Workers in The United States and The Netherlands," Discussion Paper 1998-96, Tilburg University, Center for Economic Research.
  8. Pierre Grenier & David M. Gray, 1994. "Fermetures d'usines et durées du chômage : signaux et comportements de recherche d'emploi au Canada," Économie et Prévision, Programme National Persée, vol. 113(2), pages 207-217.
  9. Daniel S. Hamermesh, 1986. "The Demand for Workers and Hours and the Effects of Job Security Policies: Theory and Evidence," NBER Working Papers 2056, National Bureau of Economic Research, Inc.
  10. Anders Boman, 2011. "Does migration pay? Earnings effects of geographic mobility following job displacement," Journal of Population Economics, Springer, vol. 24(4), pages 1369-1384, October.

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