ADVANCE NOTICE, JOB SEARCH, AND POSTDISPLACEMENT EARNINGS

Three to 5 years after job displacements, workers receiving the advanc e notice mandated by current law earn approximately 10% more than thei r nonnotified counterparts. This differential is not the result of fir ms systematically notifying persons with favorable reemployment prospe cts-early warnings are disproportionately obtained by individuals expe cted to earn relatively low wages in subsequent employment. It is not clear, however, whether prenotification has a causal effect. The notif ication differential may occur because the advance notice is frequentl y provided by employers offering other kinds of adjustment assistance such as job counseling, skill retraining, supplemental unemployment be nefits, or outplacement assistance.