Advanced Search
MyIDEAS: Login

Income Replacement and Reemployment Programs in Michigan and Neighboring States

Contents:

Author Info

  • Stephen A. Woodbury

    ()
    (W.E. Upjohn Institute for Employment Research
    Michigan State University)

Abstract

Governments in every developed industrial economy administer programs that partially replace the earnings of workers who suffer job loss or on-the-job injury. In addition, governments administer programs to help job losers gain reemployment, either through direct job placement (for those who are job-ready) or through retraining (for those who are not). This chapter describes and discusses current policy issues surrounding the main social insurance and reemployment programs in Michigan: Unemployment Insurance (UI), which partially replaces lost earnings following loss of a job; Workers' Compensation (WC), which pays for medical treatment, vocational rehabilitation, and lost earnings following a work-related injury or illness; and the cluster of reemployment and training programs that, since 1998, has come under the Workforce Investment Act (WIA). In addition to describing these programs, a main goal of the chapter is to offer a critical view of Michigan's programs by comparing them with corresponding programs in neighboring states. Discussion of these three programs could hardly be more timely. UI has come under attack for a range of alleged failings, and the Michigan legislature passed a bill in April 2002 that increased weekly benefits, lengthened benefit durations, and tightened the eligibility requirements for UI in Michigan. Also, the Workforce Investment Act of 1998 has resulted in significant changes in reemployment services nationwide as well as in Michigan, and there is continuing debate over the effectiveness of the "work first" approach that WIA entails. Finally, WC has gone through cycles in which dramatic cost increases have been followed by efforts at cost containment. Michigan's WC law has seen only minor changes during the last 20 years because reforms instituted in the early 1980s appear to have kept both medical and wage replacement costs of WC in Michigan in line with those in other states. However, health care costs are projected to resume their growth in the near future, which would directly affect WC costs and put increased pressure on the WC system.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://research.upjohn.org/cgi/viewcontent.cgi?article=1103&context=up_workingpapers
Download Restriction: This material is copyrighted. Permission is required to reproduce any or all parts.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Paper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number 02-86.

as in new window
Length:
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:upj:weupjo:02-86

Contact details of provider:
Postal: 300 S. Westnedge Ave. Kalamazoo, MI 49007 USA
Phone: 1-269-343-5541
Fax: 1-269-343-7310
Email:
Web page: http://www.upjohn.org
More information through EDIRC

Related research

Keywords: unemployment insurance; workers' compensation; income; replacement; Woodbury; Upjohn;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Carl Davidson & Stephen A. Woodbury, 1995. "Optimal Unemployment Insurance," Upjohn Working Papers and Journal Articles 95-35, W.E. Upjohn Institute for Employment Research.
  2. H. Allan Hunt & Stacey M. Eccleston, 1989. "Workers' Compensation in Michigan: Administrative Inventory," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number hah1989.
  3. Evangelos M. Falaris & Charles R. Link & Michael E. Staten, 1995. "Causes of Litigation in Workers' Compensation Programs," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number clwc.
  4. Robert J. LaLonde, 1995. "The Promise of Public Sector-Sponsored Training Programs," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 149-168, Spring.
  5. 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.
  6. Timothy J. Bartik & Kevin Hollenbeck, 2000. "The Role of Public Policy in Skills Development of Black Workers in the 21st Century," Upjohn Working Papers and Journal Articles 00-64, W.E. Upjohn Institute for Employment Research.
  7. 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.
  8. 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.
  9. Card, David & Levine, Phillip B., 1994. "Unemployment insurance taxes and the cyclical and seasonal properties of unemployment," Journal of Public Economics, Elsevier, vol. 53(1), pages 1-29, January.
  10. Cynthia K. Gustafson & Phillip B. Levine, 1998. "Less-Skilled Workers, Welfare Reform, and the Unemployment Insurance System," NBER Working Papers 6489, National Bureau of Economic Research, Inc.
  11. Bruce D. Meyer, 1995. "Lessons from the U.S. Unemployment Insurance Experiments," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 91-131, March.
  12. Stephen A. Woodbury, 2009. "Unemployment," Book chapters authored by Upjohn Institute researchers, in: Kenneth G. Dau-Schmidt & Seth D. Harris & Orley Lobel (ed.), Labor and Employment Law and Economics, volume 2, pages 480-516 W.E. Upjohn Institute for Employment Research.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:upj:weupjo:02-86. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.