Without a word of WARN-ing : advance notice, the information environment, and labor market outcomes
Abstract/Contents
- Abstract
- This thesis examines mandated advance notice of employment loss, a disclosure made by firms to workers, not investors. It has two components. First, I study the impact of mandated advance notice on workers' labor market outcomes. The impact is theoretically ambiguous. While advance notice mechanically increases job search time before displacement, it may also reduce both aggregate employment and the marginal incentive to search for new employment. Using the staggered adoption of advance notice laws and worker-level data, I find advance notice as practiced in the U.S. is associated with a five percentage point reduction in joblessness incidence immediately after displacement and a three percentage point increase in labor force participation measured one year after displacement. Second, I study the role of internal information quality on firm compliance with mandated advance notice laws. The prior labor economics literature interprets imperfect compliance as evidence of deliberate non-compliance. I propose an alternative explanation for imperfect compliance: low internal information quality. I predict that firms with high internal information quality will unwind operations before financial constraints bind and prevent the provision of notice. Using government records of notice provision, I find the days of advance notice provided is increasing in a firm's internal information quality. Collectively, my results suggest a critical role of disclosure and the information environment in aggregate unemployment
Description
| Type of resource | text |
|---|---|
| Form | electronic resource; remote; computer; online resource |
| Extent | 1 online resource |
| Place | California |
| Place | [Stanford, California] |
| Publisher | [Stanford University] |
| Copyright date | 2021; ©2021 |
| Publication date | 2021; 2021 |
| Issuance | monographic |
| Language | English |
Creators/Contributors
| Author | Malik, Sara |
|---|---|
| Degree supervisor | Piotroski, Joseph D. (Joseph David) |
| Thesis advisor | Piotroski, Joseph D. (Joseph David) |
| Thesis advisor | Choi, Jungho |
| Thesis advisor | Lee, Charles M. C |
| Thesis advisor | Marinovic, Iván |
| Degree committee member | Choi, Jungho |
| Degree committee member | Lee, Charles M. C |
| Degree committee member | Marinovic, Iván |
| Associated with | Stanford University, Graduate School of Business |
Subjects
| Genre | Theses |
|---|---|
| Genre | Text |
Bibliographic information
| Statement of responsibility | Sara Malik |
|---|---|
| Note | Submitted to the Graduate School of Business |
| Thesis | Thesis Ph.D. Stanford University 2021 |
| Location | https://purl.stanford.edu/zq549nb4978 |
Access conditions
- Copyright
- © 2021 by Sara Malik
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
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