Advance Notice and Postdisplacement Joblessness

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: This article investigates whether prenotification decreases postdis-placement 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 unemploy-ment 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 preno-tification reduces nonemployment and indicates that the actual de-crease is between 2 and 5 working days.

Additional Information

Journal of Labor Economics, Vol. 10, No. 1, January 1992, 1-32
Language: English
Date: 1992
Postdisplacement joblessness, Advance notice

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