The authors analyze data from the 1988 CPS Displaced Workers Survey to assess the effects of written advance notice of plant closings on post-displacement employment and earnings. The results suggest that notification was effective in reducing reemployment earnings losses and the probability of post-displacement unemployment only when it was given at least two months before the plant closing. This finding, the authors conclude, confirms that the 60-day advance notice of plant closings required of large employers by the Worker Adjustment and Retraining Notification Act of 1988 is appropriate.
Get full access to this article
View all access options for this article.
References
1.
AddisonJohn, and PortugalPedro. 1987. “The Effect of Advance Notification of Plant Closings on Unemployment.”Industrial and Labor Relations Review, Vol. 41, No. 1 (October), pp. 3–16.
2.
BluestoneBarry, and HarrisonBennett. 1982. The Deindustrialization of America: Plant Closings, Community Abandonment, and the Dismantling of Private Industry. New York: Basic Books.
3.
EhrenbergRonald, and JakubsonGeorge H.. 1988. Advance Notice Provisions in Plant Closing Legislation. Kalamazoo, Mich.: W.E. Upjohn Institute for Employment Research.
4.
EhrenbergRonald, and JakubsonGeorge H.. 1989. “Advance Notification of Plant Closings: Does It Matter?”Industrial Relations, Vol. 28, No. 1 (Winter), pp. 60–71.
5.
FleisherBelton M., and KniesnerThomas J.. 1984. Labor Economics: Theory, Evidence, and Policy. Englewood Cliffs, N.J.: Prentice-Hall.
6.
FolbreNancyLeightonJulia, and RoderickMelissa. 1984. “Plant Closings and Their Regulation in Maine, 1971–1982.”Industrial and Labor Relations Review, Vol. 37, No. 2 (January), pp. 185–97.
7.
HeckmanJames. 1979. “Sample Selection Bias as a Specification Error.”Econometrica, Vol. 47, No. 1 (January), pp. 153–61.
8.
HowlandMarie. 1988. Plant Closings and Worker Displacement. Kalamazoo, Mich.: W.E. Upjohn Institute for Employment Research.
9.
HowlandMarie, and PetersonGeorge E.. 1988. “Labor Market Conditions and Reemployment of Displaced Workers.”Industrial and Labor Relations Review, Vol. 42, No. 1 (October), pp. 109–22.
10.
LeighDuane, 1989. Assisting Displaced Workers: Do States Have a Better Idea?Kalamazoo, Mich.: W.E. Upjohn Institute for Employment Research.
11.
MaddenJanice Fanning. 1988. “The Distribution of Economic Losses Among Displaced Workers: Measurement Methods Matter.”Journal of Human Resources, Vol. 23, No. 1 (Winter), pp. 93–107.
12.
McKenzieRichard. 1982. Plant Closings: Public or Private Choices?Washington, D.C.: Cato Institute.
13.
Office of Technology Assessment. 1986. Plant Closings: Advance Notification and Rapid Response-Special Report. Washington, D.C.: GPO.
14.
OstermanPaul. 1988. Employment Futures: Reorganization, Dislocation, and Public Policy. New York: Oxford University Press.
15.
PodgurskyMichael, and SwaimPaul. 1987a. “The Duration of Joblessness Following Displacement.”Industrial Relations, Vol. 26, No. 3 (Fall), pp. 213–26.
16.
PodgurskyMichael, and SwaimPaul. 1987b. “Job Displacement and Earnings Loss: Evidence from the Displaced Worker Survey.”Industrial and Labor Relations Review, Vol. 41, No. 1 (October), pp. 17–29.
17.
SeitchikAdam, and ZornitskyJeffrey. 1989. From One Job to the Next: Worker Adjustment in a Changing Labor Market. Kalamazoo, Mich.: W.E. Upjohn Institute for Employment Research.
18.
U.S. Department of Commerce, Bureau of the Census. 1984. Current Population Survey, January 1984: Displaced Workers and Occupational Training Technical Documentation. Washington, D.C.: GPO.
19.
U.S. Department of Commerce, Bureau of the Census. 1988. Current Population Survey, January 1988: Displaced Workers Technical Documentation. Washington, D.C.: GPO.
