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Unemployment Compensation and Older Workers

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Abstract

Unemployment compensation in the United States is provided through a federal-state system of unemployment insurance (UI). UI provides temporary partial wage replacement to active job seekers who are involuntarily out of work. For older workers, UI is an important source of income security and a potential influence on work incentives. For many, the transition from full-time work in a career job to retirement is voluntary and orderly. For others, job displacement greatly disrupts plans. The transition often involves many intermediate steps. The chain of transitions may include full- or part-time work on another job which most often is not in the same industry and occupation (a bridge job). There may also be movement between bridge jobs, perhaps back from a bridge job to a career job, and finally a gradual movement into full retirement while out of the labor force. Many issues at the forefront of current UI policy debate are also issues of prime importance to those in the second half of their working life. Issues occur in all the standard areas of UI policy: coverage, eligibility, benefit adequacy, duration of benefits, work incentives, benefit financing, and interaction with other programs. This paper provides a brief background sketch of the labor market situation of older workers to examine issues of prime concern to older workers in these areas of UI policy. Our survey of policy issues suggests that changes in UI rules concerning, initial eligibility, continuing eligibility, wage replacement, and partial benefits should all be examined to evaluate effects on the likely employment patterns of older workers. Particular attention should be given to UI features affecting the choice of self-employment, part-time work, seasonal work, and agricultural jobs. The financing consequences of possible UI program changes should also be estimated, as should the macroeconomic impact of broadening recipiency. UI program features which would promote flexible and extended labor force

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Bibliographic Info

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This chapter was published in:

  • Peter P. Budetti & Richard V. Burkhauser & Janice M. Gregory & H. Allan Hunt (ed.), 2001. "Ensuring Health and Income Security for an Aging Workforce," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ehis.
    This item is provided by W.E. Upjohn Institute for Employment Research in its series Book chapters authored by Upjohn Institute researchers with number ehiscjosaw.

    Handle: RePEc:upj:uchaps:ehiscjosaw

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    Keywords: UNEMPLOYMENT; unemployment compensation; older workers; Unemployment insurance; Benefits; duration;

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Sewin Chan & Ann Huff Stevens, 1999. "Job Loss and Retirement Behavior of Older Men," Departmental Working Papers 199823, Rutgers University, Department of Economics.
    2. Martin Feldstein & Daniel Altman, 2007. "Unemployment Insurance Savings Accounts," NBER Chapters, in: Tax Policy and the Economy, Volume 21, pages 35-64 National Bureau of Economic Research, Inc.
    3. Christopher J. O'Leary, 1996. "The Adequacy of Unemployment Insurance Benefits," Book chapters authored by Upjohn Institute researchers, in: Advisory Council on Unemployment Compensation: Background Papers, volume 3, pages EE1-EE60 W.E. Upjohn Institute for Employment Research.
    4. Robert Tannenwald & Christopher J. O'Leary & Wei-Jang Huang, 1999. "New ways of evaluating state unemployment insurance," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 15-40.
    5. Gary Burtless, 1983. "Why Is Insured Unemployment So Low?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 14(1), pages 225-254.
    6. Joseph Quinn, . "New Paths to Retirement," Pension Research Council Working Papers 98-10, Wharton School Pension Research Council, University of Pennsylvania.
    7. Rebecca Blank & David Card & Whitney Newey, 1988. "Recent Trends in Insured and Uninsured Unemployment: Is There an Explanation?," Working Papers 623, Princeton University, Department of Economics, Industrial Relations Section..
    8. Saul J. Blaustein & Christopher J. O'Leary & Stephen A. Wandner, 1997. "Policy Issues: An Overview," Book chapters authored by Upjohn Institute researchers, in: Christopher J. O'Leary & Stephen A. Wandner (ed.), Unemployment Insurance in the United States: Analysis of Policy Issues, chapter 1, pages 1-49 W.E. Upjohn Institute for Employment Research.
    9. Paul T. Decker & Christopher J. O'Leary., 1991. "An Analysis of Pooled Evidence From the Pennsylvania and Washington Reemployment Bonus Demonstrations," Mathematica Policy Research Reports 1134, Mathematica Policy Research.
    10. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
    11. Christopher J. O'Leary, . "Performance Indicators: A Management Assessment Tool for Active Labour Programmes in Hungary and Poland," Upjohn Working Papers and Journal Articles cjo19953, W.E. Upjohn Institute for Employment Research.
    12. Christopher J. O'Leary & Murray Rubin, 1997. "Adequacy of the Weekly Benefit Amount," Book chapters authored by Upjohn Institute researchers, in: Christopher J. O'Leary & Stephen A. Wandner (ed.), Unemployment Insurance in the United States: Analysis of Policy Issues, chapter 5, pages 163-210 W.E. Upjohn Institute for Employment Research.
    13. Paul Decker & Christopher O'Leary, 1995. "Evaluating Pooled Evidence from the Reemployment Bonus Experiments," Mathematica Policy Research Reports 1978, Mathematica Policy Research.
    14. Christopher J. O'Leary & Stephen A. Wandner, 1997. "Summing Up: Achievements, Problems, and Prospects," Book chapters authored by Upjohn Institute researchers, in: Christopher J. O'Leary & Stephen A. Wandner (ed.), Unemployment Insurance in the United States: Analysis of Policy Issues, chapter 15, pages 669-722 W.E. Upjohn Institute for Employment Research.
    15. Saul J. Blaustein, 1993. "Unemployment Insurance in the United States: The First Half Century," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number uius.
    16. Joseph F. Quinn & Richard V. Burkhauser & Daniel A. Myers, 1990. "Passing the Torch: The Influence of Economic Incentives on Work and Retirement," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number pt.
    17. Terry R. Johnson & Daniel H. Klepinger, 1994. "Experimental Evidence on Unemployment Insurance Work-Search Policies," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 665-717.
    18. Stephen A. Woodbury & Murray Rubin, 1997. "The Duration of Benefits," Book chapters authored by Upjohn Institute researchers, in: Christopher J. O'Leary & Stephen A. Wandner (ed.), Unemployment Insurance in the United States: Analysis of Policy Issues, chapter 6, pages 211-283 W.E. Upjohn Institute for Employment Research.
    19. Randall W. Eberts & Christopher J. O'Leary, 1996. "Design of the Worker Profiling and Reemployment Services System and Evaluation in Michigan," Upjohn Working Papers and Journal Articles 96-41, W.E. Upjohn Institute for Employment Research.
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    Cited by:
    1. Christopher J. O'Leary & Randall W. Eberts, 2007. "Reemployment and Earnings Recovery among Older Unemployment Insurance Claimants," Upjohn Working Papers and Journal Articles 07-133, W.E. Upjohn Institute for Employment Research.
    2. Bhattacharya, Joydeep & Reed, Robert, 2006. "Social Security and Intergenerational Redistribution," Staff General Research Papers 12661, Iowa State University, Department of Economics.
    3. Mark C. Berger & Dan Black & Jeffrey Smith, 2000. "Evaluating Profiling as a Means of Allocating Government Services," UWO Department of Economics Working Papers 200018, University of Western Ontario, Department of Economics.
    4. Bhattacharya, Joydeep & Reed, Robert, 2003. "Age-Specific Employment Policies," Staff General Research Papers 10256, Iowa State University, Department of Economics.
    5. Michael Huberman & Chris Minns, 2005. "Hours of Work in Old and New Worlds: The Long View, 1870-2000," The Institute for International Integration Studies Discussion Paper Series iiisdp95, IIIS.

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