Advance Notice, Job Search, and Postdisplacement Earnings.

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Christopher J Ruhm, Jefferson-Pilot Excellence Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
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Abstract: Three to 5 years after job displacements, workers receiving the advance notice mandated by current law earn approximately 10% 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 prenotification 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, supple¬mental unemployment benefits, or outplacement assistance.

Additional Information

Journal of Labor Economics, Vol. 12, No. 1, 1-28
Language: English
Date: 1994
Job displacement, Advance notice

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