Working Paper: NBER ID: w2611
Authors: Ronald G. Ehrenberg; George H. Jakubson
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.
Keywords: plant closing legislation; advance notice; displaced workers; labor market outcomes
JEL Codes: J63; J65
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| advance notice provisions (Y20) | shorter durations of nonemployment (J65) |
| advance notice provisions (Y20) | more rapid reemployment (J68) |
| advance notice provisions (Y20) | reduced unemployment rates in local areas (J68) |
| advance notice provisions (Y20) | negative outcomes (increased turnover, decreased productivity) (J63) |
| advance notice provisions (Y20) | higher subsequent earnings for displaced workers (J68) |
| advance notice provisions (Y20) | varied effects across groups of workers (J79) |