Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/upj/weupjo/07-133.html
   My bibliography  Save this paper

Reemployment and Earnings Recovery among Older Unemployment Insurance Claimants

Author

Listed:
Abstract
The rate of involuntary job loss among older workers has increased in recent years. Previous research has found that after job separation older workers take longer to get back in jobs, and experience bigger earnings declines than younger prime age workers. These studies were based on surveys targeted at older and dislocated workers, which rely on retrospective interviews of strategic samples from the general labor force. Previous studies have not explicitly accounted for the availability of unemployment insurance (UI) benefits between jobs. This paper compares the adjustment to involuntary unemployment of older and younger prime age UI claimants, using a census of UI claimants constructed from records maintained for program administration in a large industrialized mid-western state. We compare subsequent labor market success of older UI claimants aged 50 years and over with younger prime working age claimants aged 30 to 49 following a claim for UI benefits during the major labor market contraction in 2001. We find that relative to their younger prime working age counterparts, older UI claimants return to work at lower rates, are less successful at returning to prior earnings levels, and have lower employment rates in the near term after reemployment. However, older workers who do gain reemployment after a UI claim maintain closer attachment to their new employers. The relative advantage for younger prime working age UI claimants in reemployment, earnings recovery, and subsequent employment is greatest in the first year after the claim for benefits. There is also evidence that both older and younger prime working age claimants who get back to work in the very first quarter after a UI claim have higher near term employment rates than those returning to work only one quarter later. Getting back to work quickly was also estimated to benefit older UI claimants by significantly raising the mean earnings recovery. No comparable earnings recovery was estimated for younger prime working age claimants who quickly returned to work.

Suggested Citation

  • Christopher J. O'Leary & Randall W. Eberts, 2007. "Reemployment and Earnings Recovery among Older Unemployment Insurance Claimants," Upjohn Working Papers 07-133, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:07-133
    as

    Download full text from publisher

    File URL: http://research.upjohn.org/cgi/viewcontent.cgi?article=1150&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 below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
    3. John F. Henry & L. Randall Wray, 1998. "Economic Time," Macroeconomics 9811004, University Library of Munich, Germany.
    4. Kuhn, Peter & Sweetman, Arthur, 1999. "Vulnerable Seniors: Unions, Tenure, and Wages Following Permanent Job Loss," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 671-693, October.
    5. 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.
    6. Joseph Quinn, "undated". "New Paths to Retirement," Pension Research Council Working Papers 98-10, Wharton School Pension Research Council, University of Pennsylvania.
    7. Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
    8. Paul T. Decker, "undated". "Work Incentives and Disincentives," Mathematica Policy Research Reports e09c4ee64359405c8a52e13c4, Mathematica Policy Research.
    9. repec:mpr:mprres:1973 is not listed on IDEAS
    10. Christopher J. O'Leary, "undated". "State UI Job Search Rules and Reemployment Services," Upjohn Working Papers cjo2006, W.E. Upjohn Institute for Employment Research.
    11. Randall W. Eberts & Richard A. Hobbie (ed.), 2008. "Older and Out of Work: Jobs and Social Insurance for a Changing Economy," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number oow, December.
    12. Henry S. Farber, 1997. "The Changing Face of Job Loss in the United States, 1981-1995," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997 Micr), pages 55-142.
    13. Henry S. Farber, 1997. "The Changing Face of Job Loss in the United States, 1981-1995," Working Papers 761, Princeton University, Department of Economics, Industrial Relations Section..
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mandal, Bidisha & Ayyagari, Padmaja & Gallo, William T., 2011. "Job loss and depression: The role of subjective expectations," Social Science & Medicine, Elsevier, vol. 72(4), pages 576-583, February.
    2. Jacobson, Louis & LaLonde, Robert & G. Sullivan, Daniel, 2005. "Estimating the returns to community college schooling for displaced workers," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 271-304.
    3. Ost, Ben & Pan, Weixiang & Webber, Doug, 2018. "The impact of mass layoffs on the educational investments of working college students," Labour Economics, Elsevier, vol. 51(C), pages 1-12.
    4. Richard Upward & Peter W. Wright, 2019. "Don't Look Down: The Consequences of Job Loss in a Flexible Labour Market," Economica, London School of Economics and Political Science, vol. 86(341), pages 166-200, January.
    5. Farber, Henry S, 2015. "Job Loss in the Great Recession and its Aftermath: U.S. Evidence from the Displaced Workers Survey," IZA Discussion Papers 9069, Institute of Labor Economics (IZA).
    6. Jackson, Paul & Ortego-Marti, Victor, 2024. "Skill loss during unemployment and the scarring effects of the COVID-19 pandemic," Labour Economics, Elsevier, vol. 88(C).
    7. Henry S. Farber, 2016. "Employment, Hours and Earnings Consequences of Job Loss: U.S. Evidence from the Displaced Workers Survey," Working Papers 589a, Princeton University, Department of Economics, Industrial Relations Section..
    8. Krebs, Tom & Scheffel, Martin, 2019. "Optimal Social Insurance and Rising Labor Market Risk," IZA Discussion Papers 12128, Institute of Labor Economics (IZA).
    9. 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.
    10. den Haan, Wouter J. & Ramey, Garey & Watson, Joel, 2000. "Job destruction and the experiences of displaced workers," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 52(1), pages 87-128, June.
    11. repec:wil:wileco:2012-10 is not listed on IDEAS
    12. Burda, Michael C. & Mertens, Antje, 2001. "Estimating wage losses of displaced workers in Germany," Labour Economics, Elsevier, vol. 8(1), pages 15-41, January.
    13. Bhattacharya, Joydeep & Reed, Robert R., 2002. "Age-specific employment policies," ISU General Staff Papers 200211050800001187, Iowa State University, Department of Economics.
    14. Henry S. Farber, 2015. "Job Loss in the Great Recession and its Aftermath: U.S. Evidence from the Displaced Workers Survey," NBER Working Papers 21216, National Bureau of Economic Research, Inc.
    15. Ortego-Marti, Victor, 2017. "Loss of skill during unemployment and TFP differences across countries," European Economic Review, Elsevier, vol. 100(C), pages 215-235.
    16. Kunze, Astrid & Troske, Kenneth R., 2012. "Life-cycle patterns in male/female differences in job search," Labour Economics, Elsevier, vol. 19(2), pages 176-185.
    17. Jaap H. Abbring & Gerard J. van den Berg & Pieter A. Gautier & A. Gijsbert C. van Lomwel & Jan C. van Ours & Christopher J. Ruhm, 1998. "Displaced Workers in the United States and the Netherlands," Tinbergen Institute Discussion Papers 98-084/3, Tinbergen Institute.
    18. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    19. Anja Deelen & Marloes de Graaf-Zijl & Wiljan van den Berge, 2018. "Labour market effects of job displacement for prime-age and older workers," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    20. Lars Ljungqvist & Thomas J. Sargent, 2010. "How Sweden's Unemployment Became More Like Europe's," NBER Chapters, in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 189-223, National Bureau of Economic Research, Inc.
    21. Till von Wachter & Stefan Bender, 2008. "Do Initial Conditions Persist between Firms? An Analysis of Firm-Entry Cohort Effects and Job Losers Using Matched Employer-Employee Data," NBER Chapters, in: The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, pages 135-162, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    unemployment insurance; older workers; claimants; reemployment; o'leary;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

    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:07-133. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/upjohus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.