In this paper, we examine the effect of layoffs and layoff policies on three measures of worker effort. More specifically, we use data on first-tier automotive suppliers in the U.S. and Canada to test the proposition that greater employment security interacts with other human resources policies to increase worker effort.Research: US Department of Labor, Award No. J-9-P-4-0054 Collection of data: The International Motor Vehicle Program at MIT and the Center for Regional Economic Issues, Case West Reserve University