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A Prescription to Relieve Worker Anxiety

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  • Lori G. Kletzer

    ()
    (Peterson Institute for International Economics)

  • Robert E. Litan

    (The Brookings Institution)

Abstract

With the sharp slowing of the US economy, worker anxiety is back in the news. But even during healthy economic times such as the late 1990s, workers feared layoffs and general job instability. The failure of Congress to approve fast-track trade negotiating authority in 1997 strongly suggests that no American president will be successful in persuading Congress and the American people to accept further trade liberalization until additional measures, aimed specifically at easing the pain of worker dislocations and encouraging rapid reemployment, are embraced by federal policymakers. In this brief, we outline and present cost estimates for two such proposals: wage insurance for qualifying displaced workers upon reemployment, and subsidies for health insurance for qualifying unemployed displaced workers. Both programs would provide benefits to full-time workers who have been dislocated, for any reason, from jobs they have held for at least two years.

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Bibliographic Info

Paper provided by Peterson Institute for International Economics in its series Policy Briefs with number PB01-02.

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Date of creation: Mar 2001
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Handle: RePEc:iie:pbrief:pb01-02

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Cited by:
  1. Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Center for International Economics, Working Paper Series qt27w182ht, Center for International Economics, UC Santa Cruz.
  2. Rosario Crinò, 2007. "Offshoring, Multinationals and Labor Market: A Review of the Empirical Literature," KITeS Working Papers 196, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jan 2007.
  3. Javalgi, Rajshekhar (Raj) G. & Dixit, Ashutosh & Scherer, Robert F., 2009. "Outsourcing to emerging markets: Theoretical perspectives and policy implications," Journal of International Management, Elsevier, vol. 15(2), pages 156-168, June.
  4. Burfisher, Mary E. & Hanson, Kenneth & Hopkins, Jeffrey W. & Somwaru, Agapi, 2004. "Global Agricultural Reform and U.S. Agricultural Adjustment Capacity," IAPRAP\IATRC Summer Symposium, Adjusting to Domestic and International Agricultural Reform in Industrial Countries, June 6-7, 2004, Philadelphia, PA 15763, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
  5. J. Bradford Jensen & Lori G. Kletzer, 2005. "Tradable Services: Understanding the Scope and Impact of Services Outsourcing," Working Paper Series WP05-9, Peterson Institute for International Economics.
  6. Gordon H. Hanson & Kenneth F. Scheve & Matthew J. Slaughter, 2005. "Public Finance and Individual Preferences Over Globalization Strategies," Working Papers 524, Research Seminar in International Economics, University of Michigan.
  7. Cletus C. Coughlin, 2002. "The controversy over free trade: the gap between economists and the general public," Review, Federal Reserve Bank of St. Louis, issue Jan., pages 1-22.
  8. Ramya Vijaya, 2007. "Trade, Job Losses and Gender: A Policy Perspective," Forum for Social Economics, Springer, vol. 36(2), pages 73-85, October.
  9. Lael Brainard & Robert Litan, 2004. "Outsourcing, Offshoring - Service Offshoring: Bane or Boon and What to Do?," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 5(2), pages 3-7, October.
  10. Gary Clyde Hufbauer & Ben Goodrich, 2003. "Steel Policy: The Good, the Bad, and the Ugly," Policy Briefs PB03-01, Peterson Institute for International Economics.
  11. Rosario Crino, 2006. "Are U.S. White-Collar Really at Risk of Service Offshoring?," KITeS Working Papers 183, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Oct 2006.
  12. Gary Clyde Hufbauer & Yee Wong, 2004. "China Bashing 2004," Policy Briefs PB04-05, Peterson Institute for International Economics.
  13. Linda Babcock & William Congdon & Lawrence Katz & Sendhil Mullainathan, 2012. "Notes on behavioral economics and labor market policy," IZA Journal of Labor Policy, Springer, vol. 1(1), pages 1-14, December.
  14. Davidson, Carl & Matusz, Steven J. & Nelson, Douglas R., 2007. "Can compensation save free trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 167-186, March.
  15. Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 2004. "The Muddles over Outsourcing," International Trade 0408004, EconWPA.
  16. Catherine L. Mann, 2003. "Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth," Policy Briefs PB03-11, Peterson Institute for International Economics.
  17. Louis S. Jacobson & Robert LaLonde & Daniel G. Sullivan, 2005. "Is retraining displaced workers a good investment?," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 47-66.
  18. Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Department of Economics, Working Paper Series qt27w182ht, Department of Economics, UC Santa Cruz.
  19. Barry, Frank & Walsh, Frank, 2008. "Gains and losses from sectoral relocation: A review of theory and empirics," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 4-16, March.
  20. Gary Clyde Hufbauer & Ben Goodrich, 2003. "Next Move in Steel: Revocation or Retaliation?," Policy Briefs PB03-10, Peterson Institute for International Economics.

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