Mass Layoffs and CEO Turnover

We investigate the relationship between layoff announcements and CEO turnover over a 31-year period. We find that layoffs significantly increase CEO turnover in the following year, and, in some time periods, CEO changes are strongly positively associated with layoff announcements two years earlier. We proceed to show how this relationship has changed over time, and offer several possible explanations. Finally, we find strong evidence that layoffs that are associated with negative stock price reactions are much more likely to lead to CEO turnover than those associated with positive stock price reactions, especially in the earlier years in our sample.     

Industrial Structure and Unemployment in Regional Labor Markets Industrial Structure and Unemployment

Even during periods of moderated national joblessness, certain regions face stubbornly high unemployment. Rust Belt areas are often particularly affected and raise the question of whether such labor markets may not clear even in equilibrium. This article examines evidence from a panel data set of West Virginia counties, along with case-study surveys. The combined findings help provide a better understanding of persistent local unemployment, which appears to be due to nonclearing labor markets.     

Downsizing Effects on Survivors: Layoffs,Offshoring, and Outsourcing

In a representative sample of 13,683 U.S. employees, we compared survivors of layoffs, offshoring, outsourcing, and their combinations to a group who experienced no downsizing. Survivors of layoffs perceived lower organizational performance, job security, affective attachment, calculative attachment, and had higher turnover intentions. Offshoring survivors perceived lower performance, fairness, and affective attachment, but outsourcing survivors generally did not have more negative outcomes than the no‐downsizing group. Layoffs generally had more negative outcomes than other downsizing forms.     

Temporary Buydowns and Affordability

This paper is directed to a neglected aspect of the problem of home ownership affordability: the impact on affordability of temporary buy downs. A temporary buydown is an option offered to home buyers to reduce the mortgage payment in the early years of the loan. The borrower allocates cash up front to an escrow account from which funds are withdrawn monthly to supplement the borrower's mortgage payment.
Temporary buydowns are underused partly because of the difficulty of determining whether, in any particular case, they will increase affordability. This paper develops a new instrument called the maximum affordable mortgage (MAX) which automatically allocates the buyer's available cash between buydown, down payment and other uses in a manner which maximizes affordability for the buyer, subject to whatever underwriting constraints the investor wishes to impose on payment graduation and/or the total size of the buydown.
The lender originating the MAX must be able to solve a complex algorithm at the point of sale, but the complexity is all behind the scenes. Using a computer, a loan officer can quickly find the cash allocation that maximizes affordability. The power of the MAX in increasing affordability may be enhanced if it is combined with a buyup wherein the lender trades off lower points against a higher rate.     

Industry Wage Differentials and Wait Unemployment

This analysis uses individual-level data to test the industry wage differential-wait unemployment hypothesis. Using the 1988 Bureau of Labor Statistics Displaced Worker Survey, it examines the role of predisplacement industry in determining the length of jobless spells and finds some evidence consistent with wait unemployment. The analysis also considers the incidence of joblessness separately from duration and finds that factors positively related to the occurrence of a spell are not necessarily positively related to its ultimate length.     

Temporary Employment and Strategic Staffing in the Manufacturing Sector

While prior research has identified different ways of using temporary workers to achieve numerical flexibility, quantitative analysis of temporary employment has been limited to a few key empirical indicators of demand variability that may confound important differences. Our analysis provides evidence that many manufacturers use temporary workers to achieve what we call planned and systematic numerical flexibility rather than simply in a reactive manner to deal with unexpected problems. Although temporary work may provide many benefits for employers, a key function appears to be the provision of numerical flexibility not to buffer core workers but to externalize certain jobs.