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Advance Notice and Postdisplacement Joblessness

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  • Ruhm, Christopher J

Abstract

This article investigates whether prenotification decreases postdisplacement joblessness. Reduced-form estimates indicate that lengthy written notice is associated with small increases in the probability of avoiding nonemployment but with no decline in average durations. Significant reductions are found, however, for household heads, women, nonwhites, and in local labor markets with high unemployment rates. A new method is developed to control for the endogeneity of voluntarily provided advance notice. This procedure suggests that previous research substantially overstates the degree to which prenotification reduces nonemployment and indicates that the actual decrease is between two and five working days. Copyright 1992 by University of Chicago Press.

Suggested Citation

  • Ruhm, Christopher J, 1992. "Advance Notice and Postdisplacement Joblessness," Journal of Labor Economics, University of Chicago Press, vol. 10(1), pages 1-32, January.
    • Handle: RePEc:ucp:jlabec:v:10:y:1992:i:1:p:1-32
    DOI: 10.1086/298276
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    Cited by:

    1. Peter Kuhn, "undated". "Canada and the "OECD Hypothesis": Does Labour Market Inflexibility Explain Canada's High Level of Unemployment?," Canadian International Labour Network Working Papers 10, McMaster University.
    2. Luc Sels & Geert Van Hootegem, 2001. "Seeking the Balance between Flexibility and Security: A Rising Issue in the Low Countries," Work, Employment & Society, British Sociological Association, vol. 15(2), pages 327-352, June.
    3. Audra Bowlus & Lars Vilhuber, 2001. "Displaced Workers, Early Leavers, and Re-employment Wages," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20015, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    4. T. Addison, John & Portugal, Pedro, 1998. "Some specification issues in unemployment duration analysis," Labour Economics, Elsevier, vol. 5(1), pages 53-66, March.
    5. Jaap H. Abbring & Gerard J. van den Berg & Pieter A. Gautier & A. Gijsbert C. van Lomwel & Jan C. van Ours & Christopher J. Ruhm, 1998. "Displaced Workers in the United States and the Netherlands," Tinbergen Institute Discussion Papers 98-084/3, Tinbergen Institute.
    6. Kahn, Lawrence M., 2012. "Temporary jobs and job search effort in Europe," Labour Economics, Elsevier, vol. 19(1), pages 113-128.
    7. David M. Gray & Pierre Grenier, 1994. "Fermetures d'usines et durées du chômage : signaux et comportements de recherche d'emploi au Canada," Économie et Prévision, Programme National Persée, vol. 113(2), pages 207-217.
    8. Peter J. Kuhn & Lizi Yu, 2019. "How Costly is Turnover? Evidence from Retail," NBER Working Papers 26179, National Bureau of Economic Research, Inc.
    9. Paul A. Storer & Marc A. van Audenrode, 1998. "Exploring the Links between Wage Inequality and Unemployment: A Comparison of Canada and the US," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 233-253, February.
    10. 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.
    11. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.

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