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Unemployment Compensation and Older Workers

In: Ensuring Health and Income Security for an Aging Workforce

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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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Suggested Citation

  • Christopher J. O'Leary & Stephen A. Wandner, 2001. "Unemployment Compensation and Older Workers," Book chapters authored by Upjohn Institute researchers, in: Peter P. Budetti & Richard V. Burkhauser & Janice M. Gregory & H. Allan Hunt (ed.), Ensuring Health and Income Security for an Aging Workforce, pages 85-133, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:uchaps:ehiscjosaw
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Sewin Chan & Ann Huff Stevens, 1999. "Job Loss and Retirement Behavior of Older Men," NBER Working Papers 6920, National Bureau of Economic Research, Inc.
    4. Christopher J. O'Leary, 1998. "The Adequacy of Unemployment Insurance Benefits," Book chapters authored by Upjohn Institute researchers, in: Laurie J. Bassi & Stephen A. Woodbury (ed.),Reform of the Unemployment Insurance System: Research in Employment Policy, volume 1, pages 63-110, W.E. Upjohn Institute for Employment Research.
    5. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
    6. 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.
    7. Wei-Jang Huang & Christopher J. O'Leary & Robert Tannenwald, 1999. "New ways of evaluating state unemployment insurance," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 15-40.
    8. Joseph Quinn, "undated". "New Paths to Retirement," Pension Research Council Working Papers 98-10, Wharton School Pension Research Council, University of Pennsylvania.
    9. Paul T. Decker & Christopher J. L'Leary, 1995. "Evaluating Pooled Evidence from the Reemployment Bonus Experiments," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 534-550.
    10. Rebecca M. Blank & David E. Card, 1991. "Recent Trends in Insured and Uninsured Unemployment: Is There an Explanation?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1157-1189.
    11. Paul T. Decker, "undated". "Work Incentives and Disincentives," Mathematica Policy Research Reports e09c4ee64359405c8a52e13c4, Mathematica Policy Research.
    12. 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 458eec364eac40c390e6d78c9, Mathematica Policy Research.
    13. 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.
    14. Randall W. Eberts & Christopher J. O'Leary, 1996. "Design of the Worker Profiling and Reemployment Services System and Evaluation in Michigan," Upjohn Working Papers 96-41, W.E. Upjohn Institute for Employment Research.
    15. 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.
    16. repec:mpr:mprres:1973 is not listed on IDEAS
    17. 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.
    18. repec:mpr:mprres:1134 is not listed on IDEAS
    19. 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.
    20. Christopher J. O'Leary, "undated". "Performance Indicators: A Management Assessment Tool for Active Labour Programmes in Hungary and Poland," Upjohn Working Papers cjo19953, W.E. Upjohn Institute for Employment Research.
    21. 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.
    22. repec:mpr:mprres:1978 is not listed on IDEAS
    23. 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.
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    Citations

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    Cited by:

    1. Bhattacharya, Joydeep & Reed, Robert R., 2002. "Age-specific employment policies," ISU General Staff Papers 200211050800001187, Iowa State University, Department of Economics.
    2. Joydeep Bhattacharya & Robert R. Reed, 2006. "Social Security and Intergenerational Redistribution," Contributions to Economic Analysis, in: Structural Models of Wage and Employment Dynamics, pages 183-213, Emerald Group Publishing Limited.
    3. 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.
    4. Christopher J. O'Leary & Randall W. Eberts, 2008. "Reemployment and Earnings Recovery among Older Unemployment Insurance Claimants," Book chapters authored by Upjohn Institute researchers, in: Randall W. Eberts & Richard A. Hobbie (ed.), Older and Out of Work: Jobs and Social Insurance for a Changing Economy, chapter 4, pages 59-84, W.E. Upjohn Institute for Employment Research.
    5. Mark C. Berger & Dan Black & Jeffrey Smith, 2000. "Evaluating Profiling as a Means of Allocating Government Services," University of Western Ontario, Departmental Research Report Series 200018, University of Western Ontario, Department of Economics.

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    More about this item

    Keywords

    UNEMPLOYMENT; unemployment compensation; older workers; Unemployment insurance; Benefits; duration;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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