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Layoffs as Signals: the Canadian Evidence

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Author Info

  • Doiron, D.J.

Abstract

In R. Gibbons and L. F. Katz (1991), the signaling content of layoffs and the resulting costs to the displaced workers are investigated. Evidence of this signaling effect is found among displaced workers in the United States. In this paper, a similar exercise is conducted using Canadian data, which are better in several respects: they provide information on union status, search activity, and more accurate measures of postdisplacement salaries and displacement length. Results show evidence of a signaling effect in white-collar occupations but not in blue-collar jobs regardless of union status. Also, signaling effects persist for the first three years in the postdisplacement job.

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Bibliographic Info

Paper provided by UBC Department of Economics in its series UBC Departmental Archives with number 93-40.

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Length: 20 pages
Date of creation: 1993
Date of revision:
Handle: RePEc:ubc:bricol:93-40

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Related research

Keywords: labour market ; unemployment;

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Cited by:
  1. 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.
  2. repec:iza:izadps:dp875 is not listed on IDEAS
  3. Bauer, Thomas K. & Haisken-DeNew, John P., 2001. "Employer learning and the returns to schooling," Labour Economics, Elsevier, vol. 8(2), pages 161-180, May.
  4. Jed DeVaro & Michael Waldman, 2012. "The Signaling Role of Promotions: Further Theory and Empirical Evidence," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 91 - 147.
  5. Frenette, Marc & Morissette, René & Zhang, Xuelin, 2009. "Earnings Losses of Displaced Workers: Canadian Evidence from a Large Administrative Database on Firm Closures and Mass Layoffs," CLSRN Working Papers clsrn_admin-2009-51, UBC Department of Economics, revised 25 Sep 2009.
  6. Waldman, Michael, 2007. "Theory and evidence in internal labor markets," MPRA Paper 5113, University Library of Munich, Germany.
  7. Grund, Christian, 1999. "Stigma effects of layoffs?: Evidence from German micro-data," Economics Letters, Elsevier, vol. 64(2), pages 241-247, August.
  8. Denise Doiron & Silvia Mendolia, 2011. "The impact of job loss on family dissolution," Journal of Population Economics, Springer, vol. 25(1), pages 367-398, October.
  9. Fares, Jean & Tiongson, Erwin R., 2007. "Youth unemployment, labor market transitions, and scarring : evidence from Bosnia and Herzegovina, 2001-04," Policy Research Working Paper Series 4183, The World Bank.
  10. Jukka Appelqvist, 2007. "Wage and Earnings Losses of Displaced Workers in Finland," Discussion Papers 422, Government Institute for Economic Research Finland (VATT).
  11. Alma Cohen, 2008. "Asymmetric Learning in Repeated Contracting: An Empirical Study," NBER Working Papers 13752, National Bureau of Economic Research, Inc.
  12. Song, Younghwan, 2007. "Recall bias in the displaced workers survey: Are layoffs really lemons?," Labour Economics, Elsevier, vol. 14(3), pages 335-345, June.
  13. Mendolia, Silvia, 2011. "The impact of husband's job loss on partners' mental health," MPRA Paper 41847, University Library of Munich, Germany.

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