Advance Notice, Job Search, and Postdisplacement Earnings

Christopher Ruhm

Journal of Labor Economics, 1994, vol. 12, issue 1, 1-28

Abstract: Three to five years after job displacements, workers receiving the advance notice mandated by current law earn approximately 10 percent more than their nonnotified counterparts. This differential is not the result of firms systematically notifying persons with favorable reemployment prospects--early warnings are disproportionately obtained by individuals expected to earn relatively low wages in subsequent employment. It is not clear, however, whether renotification has a causal effect. The notification differential may occur because the advance notice is frequently provided by employers offering other kinds of adjustment assistance, such as job counseling, skill retraining, supplemental unemployment benefits, or outplacement assistance. Copyright 1994 by University of Chicago Press.

Date: 1994
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