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Economic and Health Implications of Long-Term Unemployment: Earnings, Disability Benefits, and Mortality

In: New Analyses of Worker Well-Being

Author

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  • Kenneth A. Couch
  • Gayle L. Reznik
  • Christopher R. Tamborini
  • Howard M. Iams

Abstract

Data from the 1984Survey of Income and Program Participationare linked to longitudinal records from the Social Security Administration to examine the relationship between the long-term unemployment that prime-aged (ages 25–55) male workers experienced around the time of the 1980–1982 twin recessions with earnings, receipt of either Disability Insurance or Supplemental Security Income (DI-SSI) benefits, and mortality. Separate estimations are made for those who voluntarily and involuntarily left employment and the combined sample of these two groups. We find that 20 years later, long-term joblessness was associated with significantly lower earnings and higher likelihoods of the receipt of DI-SSI benefits as well as mortality.

Suggested Citation

  • Kenneth A. Couch & Gayle L. Reznik & Christopher R. Tamborini & Howard M. Iams, 2014. "Economic and Health Implications of Long-Term Unemployment: Earnings, Disability Benefits, and Mortality," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 259-305, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(2013)0000038008
    DOI: 10.1108/S0147-9121(2013)0000038008
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    More about this item

    Keywords

    Earnings; mortality; social security disability insurance; supplemental security income; unemployment; recession; health; H55; I31; J31; J63; J65;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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