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Advance Notice and Unemployment: New Evidence from the 1988 Displaced Worker Survey

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  • John T. Addison
  • Pedro Portugal

Abstract

This paper examines how advance notice of layoff affects the incidence and duration of unemployment following displacement. The authors use the Displaced Worker Survey for 1988, which, unlike earlier surveys in the series, contains information on written notice. The results are mixed. Longer written notice may more than double the proportion of white-collar workers who move directly to new employment. But written notice has no such positive effects for blue-collar workers, regardless of its length. Informal (unwritten) notice benefits male workers, either by improving their chances of avoiding unemployment (white-collar men) or by reducing the average spell of unemployment (blue-collar men).

Suggested Citation

  • John T. Addison & Pedro Portugal, 1992. "Advance Notice and Unemployment: New Evidence from the 1988 Displaced Worker Survey," ILR Review, Cornell University, ILR School, vol. 45(4), pages 645-664, July.
    • Handle: RePEc:sae:ilrrev:v:45:y:1992:i:4:p:645-664
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    Cited by:

    1. William J. Carrington, 2015. "Do We Know Why Earnings Fall with Job Displacement? Working Paper: 2015-01," Working Papers 49908, Congressional Budget Office.
    2. Pawel M. Krolikowski & Kurt G. Lunsford, 2024. "Advance layoff notices and aggregate job loss," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(3), pages 462-480, April.
    3. Kristen Keith & Abagail McWilliams, 1999. "The Returns to Mobility and Job Search by Gender," ILR Review, Cornell University, ILR School, vol. 52(3), pages 460-477, April.
    4. Roberto Pedace & Stephanie Rohn, 2011. "The Impact of Minimum Wages on Unemployment Duration: Estimating the Effects Using the Displaced Worker Survey," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(1), pages 57-75, January.
    5. Melvin Stephens, 2002. "Worker Displacement and the Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 504-537, July.
    6. Pedro Portugal & José Ferreira Machado, 2006. "U.S. Unemployment Duration: Has Long Become Longer or Short Become Shorter?," Working Papers w200613, Banco de Portugal, Economics and Research Department.
    7. McCall, Brian P, 1997. "The Determinants of Full-Time versus Part-Time Reemployment Following Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 714-734, October.
    8. Bruce C. Fallick, 1996. "A Review of the Recent Empirical Literature on Displaced Workers," ILR Review, Cornell University, ILR School, vol. 50(1), pages 5-16, October.
    9. Addison, John T & Chilton, John B, 1997. "Nondisclosure as a Contract Remedy: Explaining the Advance-Notice Puzzle," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 143-164, January.
    10. Seim, David, 2019. "On the incidence and effects of job displacement: Evidence from Sweden," Labour Economics, Elsevier, vol. 57(C), pages 131-145.
    11. William J. Carrington & Bruce Fallick, 2014. "Why Do Earnings Fall with Job Displacement?," Working Papers (Old Series) 1405, Federal Reserve Bank of Cleveland.
    12. 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.
    13. Mark Harcourt & Maureen Hannay & Helen Lam, 2013. "Distributive Justice, Employment-at-Will and Just-Cause Dismissal," Journal of Business Ethics, Springer, vol. 115(2), pages 311-325, June.
    14. Partridge, Mark D. & Rickman, Dan S., 1998. "Regional differences in chronic long-term unemployment," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(2), pages 193-215.

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