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The Worker Adjustment and Retraining Notification Act

Author

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  • John T. Addison
  • McKinley L. Blackburn

Abstract

With the passage of the 1988 Worker Adjustment and Retraining Notification Act, the United States belatedly joined the large number of industrialized nations that require employers to provide affected workers with advance notice of a plant closing or mass layoff. The authors review the legislation, and consider the possible effects of the mandate on workers' postdisplacement outcomes. Their examination of the impact of the law reveals that the quantity of notice has not increased since the act went into effect. The authors conclude by considering possible reasons why the law has been ineffective.

Suggested Citation

  • John T. Addison & McKinley L. Blackburn, 1994. "The Worker Adjustment and Retraining Notification Act," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 181-190, Winter.
    • Handle: RePEc:aea:jecper:v:8:y:1994:i:1:p:181-90
    Note: DOI: 10.1257/jep.8.1.181
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.8.1.181
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    References listed on IDEAS

    as
    1. Stephen Nord & Yuan Ting, 1992. "The Impact of Advance Notice: A Rejoinder," ILR Review, Cornell University, ILR School, vol. 45(4), pages 674-682, July.
    2. Kuhn, Peter, 1992. "Mandatory Notice," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 117-137, April.
    3. John T. Addison & Douglas A. Fox & Christopher J. Ruhm, 1992. "The Impact of Advance Notice: A Comment on a Study by Nord and Ting," ILR Review, Cornell University, ILR School, vol. 45(4), pages 665-673, July.
    4. Edward P. Lazear, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(3), pages 699-726.
    5. Ruhm, Christopher J, 1992. "Advance Notice and Postdisplacement Joblessness," Journal of Labor Economics, University of Chicago Press, vol. 10(1), pages 1-32, January.
    6. John T. Addison & Pedro Portugal, 1992. "Advance Notice and Unemployment: New Evidence from the 1988 Displaced Worker Survey," ILR Review, Cornell University, ILR School, vol. 45(4), pages 645-664, July.
    7. Michael Podgursky & Paul Swaim, 1987. "Job Displacement and Earnings Loss: Evidence from the Displaced Worker Survey," ILR Review, Cornell University, ILR School, vol. 41(1), pages 17-29, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Peter Kuhn, "undated". "Canada and the "OECD Hypothesis": Does Labour Market Inflexibility Explain Canada's High Level of Unemployment?," Canadian International Labour Network Working Papers 10, McMaster University.
    2. David Weil, 2003. "Individual Rights and Collective Agents: The Role of Old and New Workplace Institutions in the Regulation of Labor Markets," NBER Working Papers 9565, National Bureau of Economic Research, Inc.
    3. Jaap H. Abbring & Gerard J. van den Berg & Pieter A. Gautier & A. Gijsbert C. van Lomwel & Jan C. van Ours & Christopher J. Ruhm, 1998. "Displaced Workers in the United States and the Netherlands," Tinbergen Institute Discussion Papers 98-084/3, Tinbergen Institute.
    4. David Weil, 2004. "Individual Rights and Collective Agents. The Role of Old and New Workplace Institutions in the Regulation of Labor Markets," NBER Chapters, in: Emerging Labor Market Institutions for the Twenty-First Century, pages 13-44, National Bureau of Economic Research, Inc.
    5. David Weil & Archon Fung & Mary Graham & Elena Fagotto, 2006. "The effectiveness of regulatory disclosure policies," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(1), pages 155-181.
    6. Bruce C. Fallick, 1996. "A Review of the Recent Empirical Literature on Displaced Workers," ILR Review, Cornell University, ILR School, vol. 50(1), pages 5-16, October.
    7. Patton, Gregory K. & Neubert, Emily & Neubert, Mitchell J. & Rees, Rebecca, 2024. "Surviving, not thriving: The impact of downsizing on team-based organizations," Business Horizons, Elsevier, vol. 67(3), pages 251-262.
    8. Pedro Portugal & José Ferreira Machado, 2006. "U.S. Unemployment Duration: Has Long Become Longer or Short Become Shorter?," Working Papers w200613, Banco de Portugal, Economics and Research Department.
    9. John T. Addison & McKinley L. Blackburn, 1997. "A Puzzling Aspect of the Effect of Advance Notice on Unemployment," ILR Review, Cornell University, ILR School, vol. 50(2), pages 268-288, January.
    10. Núria Rodríquez-Planas, 2011. "Displacement, Signaling, and Recall Expectations," Working Papers 550, Barcelona School of Economics.
    11. Alexander, John Jr. & Spivey, Michael F., 1997. "The impact of the WARN Act on firm value," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(4), pages 905-921.
    12. Bruce Fallick & Dylan C. Jacobs & Pawel Krolikowski, 2024. "Advance Layoff Notice Provision and the WARN Act," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2024(18), pages 1-10, October.
    13. Simon Deakin & Prabirjit Sarkar, 2008. "Assessing the Long-Run Economic Impact of Labour Law Systems: A theoretical Reappraisal and Analysis of New Time Series Data," Working Papers wp367, Centre for Business Research, University of Cambridge.
    14. Friesen, Jane, 2005. "Statutory firing costs and lay-offs in Canada," Labour Economics, Elsevier, vol. 12(2), pages 147-168, April.
    15. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
    16. Addison, John T & Chilton, John B, 1997. "Nondisclosure as a Contract Remedy: Explaining the Advance-Notice Puzzle," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 143-164, January.
    17. Clifford Winston, 2008. "The Efficacy of Information Policy: A Review of Archon Fung, Mary Graham, and David Weil's Full Disclosure: The Perils and Promise of Transparency," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 704-717, September.

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    More about this item

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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