Unemployment Insurance and Reemployment among Older Workers Randall W. Eberts and Christopher J. O’Leary W. E. Upjohn Institute for Employment Research www.upjohninstitute.org Prepared for the National Academy of Social Insurance conference “Older and Out of Work: Jobs and Social Insurance for a Changing Economy,” January 19-20, 2006, National Press Club, Washington, DC.
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Unemployment Insurance and Reemployment among Older Workers
Unemployment Insurance and Reemployment among Older Workers. Randall W. Eberts and Christopher J. O’Leary W. E. Upjohn Institute for Employment Research www.upjohninstitute.org - PowerPoint PPT Presentation
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Unemployment Insurance and Reemployment among Older Workers
Randall W. Eberts and Christopher J. O’Leary W. E. Upjohn Institute for Employment Research
www.upjohninstitute.org
Prepared for the National Academy of Social Insurance conference “Older and Out of Work: Jobs and Social Insurance for a Changing Economy,” January
19-20, 2006, National Press Club, Washington, DC.
Unemployment Insurance and Reemployment among Older Workers
1. Background
2. Samples and Methodology
3. Reemployment of UI Applicants by Age
4. Reemployment Earnings by Age
5. Reemployment Job Tenure by Age
6. Summary and Conclusions
1. Background: Prospects for Older Workers
• Rising Risk of Job Loss Farber (1997)
• Greater Time to Reemployment and Earnings LossChan and Stevens (2001)
• Smaller Share of Jobless and Higher UI RecipiencyO’Leary and Wandner (2001)
• Older and Longer Job Tenure, Human Capital LossBLS (2004)
• Among UI applicants, how do older and younger Beneficiaries, non-Beneficiaries, and Exhaustees fare in terms of employment, earnings, and job stability?
Age <=24 25-34 35-44 45-54 55-64 >=65
UI 9.7 23.6 26.6 24.0 12.6 2.9
LF 15.4 22.2 25.5 22.5 11.3 3.1
Un 32.0 22.6 20.2 15.7 7.6 1.9
Age Distribution of Labor Force, Unemployment, and UI Receipt in the United States, 2002
<=2425-34
35-4445-54
55-64>=65
Pct of UI Recipients
Pct of LF
Pct of Unemployed0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Age Distribution of Labor Force, Unemployment, and UI Receipt in the United States, 2002
2. Sample and Methodology
• UI Applicants in Ohio, 2001• Three years of quarterly follow-up data• Data on Characteristics and Quarterly Earnings
• Descriptive Transition Matrices• Based on Quarterly Earnings Records
(Employment, Earnings, Employer Stability)
Outcomes and Characteristic Means for UI Beneficiaries Age 30-65 in Ohio, 2001
Overall Older Younger
Sample Size (Claims) 287,780 78,549 209,231
Full-Time Equivalent Weeks of UI 14.9 14.7 14.9
Exhausted Regular UI 0.321 0.330 0.318
Fraction of Entitlement/Benefits Used 0.579 0.572 0.582
Employed One Quarter After Benefit Year Begin 0.651 0.642 0.655
Base Period Earnings $31,736 $35,854 $30,189
Entitlement Length (Weeks) 25.8 25.8 25.8
Weekly Benefit Amount 273 275 272
WBA at Maximum 0.216 0.192 0.225
Work Search Exempt 0.316 0.342 0.306
Characteristic Means for UI Beneficiaries Age 30-65 in Ohio, 2001
Overall Older Younger
Age as of BYB 43.8 55.0 39.6
Gender, Female 0.330 0.326 0.331
Race, White (*1) 0.834 0.858 0.826
Race, African American 0.124 0.103 0.131
Race, Hispanic 0.020 0.015 0.021
Education, Less than High School 0.197 0.225 0.187
Education, High School Grad / GED 0.506 0.482 0.515
Education, Some College 0.197 0.190 0.200
Education, Bachelor Degree or Higher 0.099 0.103 0.098
3. Reemployment of UI Applicants by Age
• Ohio UI Beneficiaries – Older have lower re-employment rates
• Ohio non-UI Beneficiaries– Delay in re-employment greatly reduces
subsequent probability of employment
• Ohio UI Exhaustees – Recover from low early rates of reemployment
Ohio Regular UI Beneficiaries for 2001
Employment Probabilities for Older UI Beneficiaries in Ohio Gaining Reemployment t Quarters After UI Application