IDEAS home Printed from https://ideas.repec.org/p/upj/weupjo/02-86.html
   My bibliography  Save this paper

Income Replacement and Reemployment Programs in Michigan and Neighboring States

Author

Listed:
  • 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.

Suggested Citation

  • Stephen A. Woodbury, 2002. "Income Replacement and Reemployment Programs in Michigan and Neighboring States," Upjohn Working Papers and Journal Articles 02-86, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:02-86
    as

    Download full text from publisher

    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 search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Davidson, Carl & Woodbury, Stephen A., 1997. "Optimal unemployment insurance," Journal of Public Economics, Elsevier, vol. 64(3), pages 359-387, June.
    3. 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.
      • Stephen A. Woodbury, 2009. "Unemployment," Chapters,in: Labor and Employment Law and Economics, chapter 17 Edward Elgar Publishing.
    4. 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, November.
    5. 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.
    6. Timothy J. Bartik & Kevin Hollenbeck, 2004. "The Role of Public Policy in skills Development of Black Workers in the 21st Century," Book chapters authored by Upjohn Institute researchers,in: Cecilia A. Conrad (ed.), Building Skills for Black Workers: Preparing for the Future Labor Market, pages 127-148 W.E. Upjohn Institute for Employment Research.
    7. 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.
    8. 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, November.
    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. 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, November.
    11. 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.
    12. 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.
    13. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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: (). General contact details of provider: http://edirc.repec.org/data/upjohus.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.