Announced Layoffs and Local Labor Markets: Timing, Persistence and Spillovers
Firms must give advance legal notice of large layoffs under the WARN Act. I use the dates of these notices for hundreds of large layoff events in more than 20 U.S. states (2004–2019) to estimate how announced layoffs affect county employment, using a within-state matched event-study design. The paper follows the loss from the day of the notice through three years, and separates losses in the affected industry from spillovers to other sectors and to nearby counties.