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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.

Suggested Citation

  • Lori G. Kletzer & Robert E. Litan, 2001. "A Prescription to Relieve Worker Anxiety," Policy Briefs PB01-02, Peterson Institute for International Economics.
  • Handle: RePEc:iie:pbrief:pb01-02
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    References listed on IDEAS

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    1. Cushman, David O, 1985. "Real Exchange Rate Risk, Expectations, and the Level of Direct Investment," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 297-308, May.
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    Cited by:

    1. Gordon H. Hanson & Kenneth Scheve & Matthew J. Slaughter, 2007. "Public Finance And Individual Preferences Over Globalization Strategies," Economics and Politics, Wiley Blackwell, vol. 19(1), pages 1-33, March.
    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. Lael Brainard & Robert Litan, 2004. "Outsourcing, Offshoring - Service Offshoring: Bane or Boon and What to Do?," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 5(2), pages 3-7, October.
    4. Louis S. Jacobson & Robert J. 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.
    5. Gary Clyde Hufbauer & Yee Wong, 2004. "China Bashing 2004," Policy Briefs PB04-05, Peterson Institute for International Economics.
    6. 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).
    7. Robert Z. Lawrence & Tyler Moran, 2016. "Adjustment and Income Distribution Impacts of the Trans-Pacific Partnership," Working Paper Series WP16-5, Peterson Institute for International Economics.
    8. Ramya Vijaya, 2007. "Trade, Job Losses and Gender: A Policy Perspective," Forum for Social Economics, Springer;The Association for Social Economics, vol. 36(2), pages 73-85, October.
    9. Gary Clyde Hufbauer & Ben Goodrich, 2003. "Steel Policy: The Good, the Bad, and the Ugly," Policy Briefs PB03-01, Peterson Institute for International Economics.
    10. 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.
    11. Linda Babcock & William Congdon & Lawrence Katz & Sendhil Mullainathan, 2012. "Notes on behavioral economics and labor market policy," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), pages 1-14.
    12. 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.
    13. 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.
    14. 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.
    15. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, pages 93-114.
    16. Schäfer, Holger, 2002. "Lohnversicherung: Ein Vorschlag zur Reform der Arbeitslosenversicherung," IW-Trends – Vierteljahresschrift zur empirischen Wirtschaftsforschung, Institut der deutschen Wirtschaft Köln (IW) / Cologne Institute for Economic Research, vol. 29(3), pages 11-19.
    17. Gary Clyde Hufbauer & Ben Goodrich, 2003. "Next Move in Steel: Revocation or Retaliation?," Policy Briefs PB03-10, Peterson Institute for International Economics.
    18. Bacchetta, Marc & Jansen, Marion, 2003. "Adjusting to trade liberalization: The role of policy, institutions and WTO Disciplines," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 7, number 7.
    19. Stephen A. Wandner, 2016. "Wage Insurance as a Policy Option in the United States," Upjohn Working Papers and Journal Articles 16-250, W.E. Upjohn Institute for Employment Research.
    20. 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.
    21. repec:eee:jpolmo:v:39:y:2017:i:4:p:616-624 is not listed on IDEAS
    22. 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.
    23. 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.
    24. 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.
    25. 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.

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