Displacement, Signaling, and Recall Expectations
This paper is the first to present empirical evidence consistent with models of signaling through unemployment and to uncover a new stylized fact using the 1988-2006 DWS, namely that, among white-collar workers, post-displacement earnings fall less rapidly with unemployment spells for layoffs than for plant closings. Because high-productivity workers are more likely to be recalled than low-productivity ones, they may choose to signal their productivity though unemployment, in which case the duration of unemployment may be positively related to post-displacement wages. Identification is done using workers whose plant closed as they cannot be recalled, and no incentives to signal arise.
|Date of creation:||Apr 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Ramon Trias Fargas, 25-27, 08005 Barcelona|
Phone: +34 93 542-1222
Fax: +34 93 542-1223
Web page: http://www.barcelonagse.eu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Arcidiacono & Patrick Bayer & Aurel Hizmo, 2008.
"Beyond Signaling and Human Capital: Education and the Revelation of Ability,"
NBER Working Papers
13951, National Bureau of Economic Research, Inc.
- Peter Arcidiacono & Patrick Bayer & Aurel Hizmo, 2010. "Beyond Signaling and Human Capital: Education and the Revelation of Ability," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 76-104, October.
- Patrick J. Bayer & Peter Arcidiacono & Aurel Hizmo, 2010. "Beyond Signaling and Human Capital: Education and the Revelation of Ability," Working Papers 10-51, Duke University, Department of Economics.
- Galindo-Rueda, Fernando, 2003.
"Employer Learning and Schooling-Related Statistical Discrimination in Britain,"
Royal Economic Society Annual Conference 2003
82, Royal Economic Society.
- Fernando Galindo-Rueda, 2003. "Employer learning and schooling-related statistical discrimination in Britain," LSE Research Online Documents on Economics 19491, London School of Economics and Political Science, LSE Library.
- Fernando Galindo-Rueda, 2003. "Employer Learning and Schooling-Related Statistical Discrimination in Britain," CEE Discussion Papers 0031, Centre for the Economics of Education, LSE.
- Galindo-Rueda, Fernando, 2003. "Employer Learning and Schooling-Related Statistical Discrimination in Britain," IZA Discussion Papers 778, Institute for the Study of Labor (IZA).
- Gueorgui Kambourov & Iourii Manovskii, 2009.
"Occupational Mobility and Wage Inequality,"
Review of Economic Studies,
Oxford University Press, vol. 76(2), pages 731-759.
- Gottfries, Nils & McCormick, Barry, 1995.
"Discrimination and open unemployment in a segmented labour market,"
European Economic Review,
Elsevier, vol. 39(1), pages 1-15, January.
- Gottfries, N. & McCormick, B., 1993. "Discrimination and open unemployment in a segmented labour market," Discussion Paper Series In Economics And Econometrics 9320, Economics Division, School of Social Sciences, University of Southampton.
- Gottfries, N. & Mccormick, B., 1990. "Discrimination And Open Unemployment In A Segmented Labour Market," Papers 460, Stockholm - International Economic Studies.
- Gibbons, Robert & Katz, Lawrence F, 1991.
"Layoffs and Lemons,"
Journal of Labor Economics,
University of Chicago Press, vol. 9(4), pages 351-80, October.
- Gibbons, R. & Katz, L.F., 1989. "Layoffs And Lemons," Working papers 531, Massachusetts Institute of Technology (MIT), Department of Economics.
- Robert Gibbons & Lawrence Katz, 1989. "Layoffs and Lemons," NBER Working Papers 2968, National Bureau of Economic Research, Inc.
- Gibbons, Robert & Katz, Lawrence F., 1991. "Layoffs and Lemons," Scholarly Articles 3442782, Harvard University Department of Economics.
- Michael Waldman, 1989.
"Up-or-Out Contracts: A Signaling Perspective,"
UCLA Economics Working Papers
556, UCLA Department of Economics.
- Kahn, Lisa B., 2013.
"Asymmetric Information between Employers,"
IZA Discussion Papers
7147, Institute for the Study of Labor (IZA).
- Alexandros Zangelidis, 2008. "Occupational And Industry Specificity Of Human Capital In The British Labour Market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(4), pages 420-443, 09.
- George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1990.
"Waiting for work,"
Federal Reserve Bank of San Francisco, issue Nov.
- Miana Plesca & Iourii Manovskii & Gueorgui Kambourov, 2010.
"Training and Human Capital,"
2010 Meeting Papers
1263, Society for Economic Dynamics.
- Fabian Lange, 2007. "The Speed of Employer Learning," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 1-35.
- Joshua C. Pinkston, 2006.
"A Model of Asymmetric Employer Learning With Testable Implications,"
390, U.S. Bureau of Labor Statistics.
- Joshua C. Pinkston, 2009. "A Model of Asymmetric Employer Learning with Testable Implications," Review of Economic Studies, Oxford University Press, vol. 76(1), pages 367-394.
- 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.
- Jensen, P. & Nielsen, M.S., 1999.
"Short- and Long-Term Unemployment: How do Temporary Layoffs Affect this Distinction?,"
99-06, Centre for Labour Market and Social Research, Danmark-.
- Peter Jensen & Michael Svarer, 2003. "Short- and long-term unemployment: How do temporary layoffs affect this distinction?," Empirical Economics, Springer, vol. 28(1), pages 23-44, January.
- Núria Rodríguez-Planas, 2009. "A signaling model of temporary layoffs," Oxford Economic Papers, Oxford University Press, vol. 61(3), pages 566-585, July.
- Laing, D., 1990. "Involuntary Layoffs in a Model with Asymmetry Information Concerning Worker Ability," Papers 12-90-4, Pennsylvania State - Department of Economics.
- Limor Golan, 2005. "Counteroffers and Efficiency in Labor Markets with Asymmetric Information," Journal of Labor Economics, University of Chicago Press, vol. 23(2), pages 373-393, April.
- Michael Waldman, 1984.
"Job Assignments, Signalling, and Efficiency,"
RAND Journal of Economics,
The RAND Corporation, vol. 15(2), pages 255-267, Summer.
- Gueorgui Kambourov & Iourii Manovskii, 2009.
"Occupational Specificity Of Human Capital,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 63-115, 02.
- 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.
- Jan Zábojník & Dan Bernhardt, 2001. "Corporate Tournaments, Human Capital Acquisition, and the Firm Size—Wage Relation," Review of Economic Studies, Oxford University Press, vol. 68(3), pages 693-716.
- Harry Krashinsky, 2002. "Evidence on Adverse Selection and Establishment Size in the Labor Market," ILR Review, Cornell University, ILR School, vol. 56(1), pages 84-96, October.
- Eriksson, Stefan, 2002. "Imperfect information, wage formation, and the employability of the unemployed," Working Paper Series 2002:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- DeVaro, Jed & Waldman, Michael, 2006.
"The signaling role of promotions: Further theory and empirical evidence,"
1550, University Library of Munich, Germany.
- 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.
- Kostas G. Mavromaras & Chris D. Orme, 2004. "Temporary layoffs and split population models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(1), pages 49-67.
- Lawrence F. Katz, 1986. "Layoffs, Recall and the Duration of Unemployment," NBER Working Papers 1825, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:bge:wpaper:550. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar)
If references are entirely missing, you can add them using this form.