TY  - RPRT
        AU  - Rodríguez-Planas, Núria
        TI  - Signaling in the Labor Market: New Evidence on Layoffs and Plant Closings
        PY  - 2004/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1009
        UR  - https://www.iza.org/index.php/publications/dp1009
        AB  - 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.

        KW  - unemployment
KW  - signaling
KW  - laid-off workers
KW  - wages
        ER  -