ERIC Number: ED326680
Record Type: Non-Journal
Publication Date: 1990
Reference Count: N/A
The Impact of Advance Notice Provisions on Postdisplacement Outcomes.
Ruhm, Christopher J.
The Worker Adjustment and Retraining Notification Act (WARN) was passed in 1987 to provide advance notice to workers whose jobs are to be eliminated because of plant closings and relocations. A study examined the extent to which advance notice eases the adjustment problems associated with permanent loss of jobs. Data from the Displaced Worker Supplement to the January 1988 Current Population Survey, which contain information on the type and timing of notice and on the duration of the initial spell of joblessness, were analyzed. Six primary findings emerged: (1) prior to the passage of WARN, few firms voluntarily provided written advance notice of 60 days or more; (2) previous research has overestimated the extent to which prenotification reduces postdisplacement joblessness; (3) written announcements of layoffs and plant closings increase the probability that displaced workers obtain new positions without intervening joblessness--however, there is no indication that formal notice reduces average joblessness for those failing to find other jobs; (4) formal advance notice provided more than 2 months prior to displacement may substantially raise earnings in the new job; (5) further research is needed before the effects of mandatory notice can be predicted confidently; and (6) the impact of prior notification varies widely over population subgroups, with married persons, household heads, and workers in high-unemployment areas benefiting most. (46 references) (KC)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Employment and Training Administration (DOL), Washington, DC.
Authoring Institution: Boston Univ., MA. Center for Applied Social Science.