National Academies Press: OpenBook

Technology and Employment: Innovation and Growth in the U.S. Economy (1987)

Chapter: Appendix D: Statement of Anne O. Krueger

« Previous: Appendix C: Papers Commissioned by the Panel
Suggested Citation:"Appendix D: Statement of Anne O. Krueger." National Academy of Sciences, National Academy of Engineering, and Institute of Medicine. 1987. Technology and Employment: Innovation and Growth in the U.S. Economy. Washington, DC: The National Academies Press. doi: 10.17226/1004.
Page 216

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

D Statement of Anne 0. Krueger Advance notification of layoffs is undoubtedly beneficial to those workers who will lose their jobs. If there were no negative side effects associated with advance notification, it would clearly be beneficial to all. There will be several side effects, however, if notification is mandatory. First, the necessary enforcement apparatus would increase the cost of doing business. Second, for all firms, but especially for risky ones, knowledge that layoffs could not be made on short notice would increase incentives to use capital and hire fewer workers. To the extent that fewer jobs would be created, the proposed requirement would hurt the employ- ment prospects of those the proposal is designed to assist. That manda- tory periods prior to layoffs can result in smaller levels of employment has been well documented in a number of developing countries. Third, requirements of advance notification reduce the flexibility of firms already in difficulty. The requirement is, in effect, the same as a tax for these firms. I conclude that advance notification is desirable, and efforts to educate employers of its value to employees should be encouraged. With respect to mandatory notification, however, I believe that the evidence is far from sufficient to warrant such a step. 216

Next: Index »
Technology and Employment: Innovation and Growth in the U.S. Economy Get This Book
Buy Paperback | $65.00
MyNAP members save 10% online.
Login or Register to save!
Download Free PDF

Will the adoption of new technologies by U.S. industry lead to widespread unemployment? Or will the resulting use of new processes and techniques, as well as the introduction of new products, open new opportunities for American workers? This volume studies the relationship of technology to employment and the effects of technological change on the workplace. The authors discuss the role of new technologies in strengthening U.S. international competitiveness, recommend initiatives for assisting displaced workers, and make recommendations to aid industry in developing and adopting the new technology it needs to compete successfully in the world economy.

  1. ×

    Welcome to OpenBook!

    You're looking at OpenBook,'s online reading room since 1999. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website.

    Do you want to take a quick tour of the OpenBook's features?

    No Thanks Take a Tour »
  2. ×

    Show this book's table of contents, where you can jump to any chapter by name.

    « Back Next »
  3. ×

    ...or use these buttons to go back to the previous chapter or skip to the next one.

    « Back Next »
  4. ×

    Jump up to the previous page or down to the next one. Also, you can type in a page number and press Enter to go directly to that page in the book.

    « Back Next »
  5. ×

    To search the entire text of this book, type in your search term here and press Enter.

    « Back Next »
  6. ×

    Share a link to this book page on your preferred social network or via email.

    « Back Next »
  7. ×

    View our suggested citation for this chapter.

    « Back Next »
  8. ×

    Ready to take your reading offline? Click here to buy this book in print or download it as a free PDF, if available.

    « Back Next »
Stay Connected!