THE COSTS OF DEFENSE-RELATED LAYOFFS IN NEW-ENGLAND

Since the late 1980s, declines in defense spending have resulted in dr amatic employment reductions in defense-related sectors of the economy . Although considerable information exists on the fate of major defens e contractors and military bases in New England, little is known about what has happened to laid-off defense workers. This article starts by estimating the magnitude of defense-related employment reductions in New England since the late 1980s. It then examines the experiences of a sample of approximately 5,000 former defense workers who looked for a new job following their layoffs. The research confirms that the regi on's work force has suffered considerably as a result of defense cutba cks. The problems are most severe for older workers and those without a college degree, as well as workers located in areas of New England t hat remain economically disadvantaged despite the employment recovery that began in 1992.