This paper surveys the theoretical and empirical research on the causes of plant closures and the types of communities most likely to experience capital disinvestment. The article also explores the impact of a plant closure or mass layoff on the displaced worker and the characteristics of workers who suffer the largest income losses from displacement. One of the most debated policies to assist displaced workers and communities is to require employers to give workers advance notice of an impending closure. This paper reviews the literature on the impact of prenotification on the reemployment success of displaced workers, and finally, it reviews the implications of the above findings for planning practice.
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