@TechReport{iza:izadps:dp1009,
            	author={Rodríguez-Planas, Núria},
            	title={Signaling in the Labor Market: New Evidence on Layoffs and Plant Closings},
            	year={2004},
	month={Feb},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1009},
            	url={https://www.iza.org/index.php/publications/dp1009},
	abstract={In my asymmetric-information model of layoffs, high-productivity workers are more likely to be
recalled to their former employer and may choose to remain unemployed rather than to
accept a low-wage job. In this case, unemployment can serve as a signal of productivity, and
duration of unemployment may be positively related to post-laid-off wages even among
workers who are not recalled. In contrast, because workers whose plant closed cannot be
recalled, longer unemployment for them should not have a positive signaling benefit. Analysis
of the data from the January 1988-2000 Displaced Workers Supplements to the Current
Population Survey reveals that the wage/unemployment duration relation differs between
laid-off workers and workers displaced through plant closings in the predicted way, and finds
evidence consistent with asymmetric information in the U.S. labor market.
},
	keywords={unemployment;signaling;laid-off workers;wages},
            }