Plant closings: Lessons from the maine experience

Abstract

This paper discusses the economics behind plant closings, suggests a possible role for public policy to ameliorate the effects of closings in some situations, and reviews Maine's experience with mandatory advance notice of closings and severance payments. The possibility of a less flexible labor market in Maine is noted, as are areas for future research. Finally, the economic and political history of Maine's experience with plant closing legislation is discussed in terms of its implications for similar legislation at the federal level.