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Advance Notice, Job Search, and Postdisplacement Earnings

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  • Ruhm, Christopher J

Abstract

Three to five years after job displacements, workers receiving the advance notice mandated by current law earn approximately 10 percent more than their nonnotified counterparts. This differential is not the result of firms systematically notifying persons with favorable reemployment prospects--early warnings are disproportionately obtained by individuals expected to earn relatively low wages in subsequent employment. It is not clear, however, whether renotification has a causal effect. The notification differential may occur because the advance notice is frequently provided by employers offering other kinds of adjustment assistance, such as job counseling, skill retraining, supplemental unemployment benefits, or outplacement assistance. Copyright 1994 by University of Chicago Press.

Suggested Citation

  • Ruhm, Christopher J, 1994. "Advance Notice, Job Search, and Postdisplacement Earnings," Journal of Labor Economics, University of Chicago Press, vol. 12(1), pages 1-28, January.
    • Handle: RePEc:ucp:jlabec:v:12:y:1994:i:1:p:1-28
    DOI: 10.1086/298341
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    References listed on IDEAS

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    Cited by:

    1. Kostøl, Andreas Ravndal & Merkle, Matthew C. & Grindaker, Morten, 2024. "Layoff Costs and Learning about Employer Financial Distress," IZA Discussion Papers 17340, IZA Network @ LISER.
    2. Fackler, Daniel & Stegmaier, Jens & Upward, Richard, 2023. "Safety net or helping hand? The effect of job search assistance and compensation on displaced workers," IWH Discussion Papers 18/2023, Halle Institute for Economic Research (IWH).
    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. 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.
    5. Partridge, Mark D. & Rickman, Dan S., 1998. "Regional differences in chronic long-term unemployment," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(2), pages 193-215.
    6. Stephen Seninger, 1997. "Jobless spells and re-employment wages," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1169-1177.
    7. Pawel M. Krolikowski & Kurt G. Lunsford, 2024. "Advance layoff notices and aggregate job loss," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(3), pages 462-480, April.
    8. Christopher J. Ruhm & Jackqueline L. Teague, 1995. "Parental Leave Policies in Europe and North America," NBER Working Papers 5065, National Bureau of Economic Research, Inc.
    9. Audra Bowlus & Lars Vilhuber, 2001. "Displaced Workers, Early Leavers, and Re-employment Wages," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20015, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    10. 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.
    11. David N. Margolis, 2002. "Licenciements collectifs et délais de reprise d'emploi," Économie et Statistique, Programme National Persée, vol. 351(1), pages 65-85.
    12. Jane Friesen, 1997. "Mandatory Notice and the Jobless Durations of Displaced Workers," ILR Review, Cornell University, ILR School, vol. 50(4), pages 652-666, July.

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