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Advance Notice, Job Search, and Postdisplacement Earnings

  • Ruhm, Christopher J

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.

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File URL: http://dx.doi.org/10.1086/298341
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 12 (1994)
Issue (Month): 1 (January)
Pages: 1-28

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Handle: RePEc:ucp:jlabec:v:12:y:1994:i:1:p:1-28
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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  1. John T. Addison & Pedro Portugal, 1987. "The Effect of Advance Notification of Plant Closings on Unemployment," ILR Review, Cornell University, ILR School, vol. 41(1), pages 3-16, October.
  2. Stephen R. G. Jones, 1988. "The Relationship Between Unemployment Spells and Reservation Wages as a Test of Search Theory," The Quarterly Journal of Economics, Oxford University Press, vol. 103(4), pages 741-765.
  3. Nancy R. Folbre & Julia L. Leighton & Melissa R. Roderick, 1984. "Plant Closings and Their Regulation in Maine, 1971–1982," ILR Review, Cornell University, ILR School, vol. 37(2), pages 185-196, January.
  4. Michael A. Curme & Barry T. Hirsch & David A. MacPherson, 1990. "Union Membership and Contract Coverage in the United States, 1983–1988," ILR Review, Cornell University, ILR School, vol. 44(1), pages 5-33, October.
  5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  6. Topel, Robert, 1990. "Specific capital and unemployment: Measuring the costs and consequences of job loss," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 33(1), pages 181-214, January.
  7. Adam D. Seitchik, 1991. "When Married Men Lose Jobs: Income Replacement within the Family," ILR Review, Cornell University, ILR School, vol. 44(4), pages 692-707, July.
  8. Marie Howland & George E. Peterson, 1988. "Labor Market Conditions and the Reemployment of Displaced Workers," ILR Review, Cornell University, ILR School, vol. 42(1), pages 109-122, October.
  9. Daniel S. Hamermesh, 1987. "The Costs of Worker Displacement," The Quarterly Journal of Economics, Oxford University Press, vol. 102(1), pages 51-75.
  10. Ehrenberg, Ronald G & Oaxaca, Ronald L, 1976. "Unemployment Insurance, Duration of Unemployment, and Subsequent Wage Gain," American Economic Review, American Economic Association, vol. 66(5), pages 754-66, December.
  11. Paul L. Burgess & Jerry L. Kingston, 1976. "The Impact of Unemployment Insurance Benefits on Reemployment Success," ILR Review, Cornell University, ILR School, vol. 30(1), pages 25-31, October.
  12. 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.
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