Impact of Advance Notice Provisions on Postdisplacement Outcomes

摘要

The study examined the extent to which advance notice eases adjustment problems of workers displaced from their jobs due to plant closings and permanent layoffs. An analysis was also made of how much impact advance notice has on postdisplacement wage levels of workers who returned to employment. Some primary findings are: (1) Only a few employers gave advance notice prior to the enactment of WARN legislation in 1988; (2) Previous research tended to overestimate the extent to which prior notice reduces postdisplacement joblessness; (3) Written advance notice increases the likelihood that displaced workers can obtain new positions without intervening joblessness; (4) Formal advance notice 60 days or more prior to layoff may substantially increase earnings in the new job; and (5) Prior notice impacts differently on various subgroups and provides greater benefit to certain groups such as heads of households, married persons, and workers in geographic areas with high unemployment.