Abstract
Abstract Empirical studies in the job displacement literature have found that workers face significant earnings losses on average when they are permanently displaced from jobs. Previous work also finds that the costliness of job loss varies widely and that some of this variation may result from the differences between layoffs and plant closings. Layoffs provide hiring firms worker specific information about productivity but plant closings do not. This paper extends the understanding of the costs of job loss by presenting a theoretical motivation that indicates that labor market conditions can influence the information contained in a layoff. The empirical results from the Displaced Worker Supplement support this model and suggest that when the local unemployment rate is high, less information is transmitted by a layoff concerning worker quality, for the sample of white-collar workers.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: The B.E. Journal of Economic Analysis & Policy
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
