Advance Notice Provisions in Plant Closing Legislation: Do They Matter?

Ronald Ehrenberg and George H. Jakubson

No 2611, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper evaluates the cases for and against plant closing legislation. In spite of the growth of legislative efforts in the area, there has been surprisingly little effort devoted to analyzing what the effects are of existing plant closing legislation, of provisions in privately negotiated collective bargaining agreements that provide for advance notice in case of plant shutdowns and/or layoffs, and of voluntary employer provision of advance notice. The paper summarizes the results of previous research, and our own empirical analyses that used the January 1984 Bureau of Labor Statistics Survey of Displaced Workers, on the effects of advance notice on displaced workers' durations of nonemployment and post-displacement earnings. Based upon these findings, implications for public policy are drawn.

Date: 1988-06
Note: LS
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Published as "Advanced Notification of Plant Closing: Does It Matter?" From Industrial Relations, Vol. 28, No. 1, pp. 60-71, (Winter 1989).

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