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A Word of WARN-ing: Advance Notice of Layoffs and Labor Market Outcomes

Author

Listed:
  • Malik, Sara

    (University of Utah)

  • Rabier, MaryJane

    (Washington University, St. Louis)

Abstract

This study investigates the impact of state-level Worker Adjustment and Retraining Notification (WARN) Acts on advance notice and post-displacement labor market outcomes for U.S. workers from 1993 to 2019. State WARN adoption increases the likelihood of receiving 30+ days of notice by about 4 percentage points. Instrumental variables estimates, supplemented with local average response functions to address weak instruments, show that lengthy notice reduces immediate joblessness by 4 to 7 percentage points. The effects are most pronounced for low-skill workers. Longer term outcomes are less robust. The results indicate that enforceable mandates improve short run transitions, particularly for vulnerable workers.

Suggested Citation

  • Malik, Sara & Rabier, MaryJane, 2025. "A Word of WARN-ing: Advance Notice of Layoffs and Labor Market Outcomes," IZA Discussion Papers 18166, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18166
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    Keywords

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    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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