This project examines differences in how workers interact with the UI system as they get older, in how older and younger workers respond to changes in UI benefit generosity, and describes the implications of these findings for the design of Unemployment Insurance.
Background
The United States and other developed countries are experiencing rapidly aging populations, and workforces are similarly aging. In the US, one of the key programs protecting workers who lose their jobs is the Unemployment Insurance (UI) system, which provides financial benefits to unemployed workers while they look for work. The UI system is particularly important for older people who have been laid off because older workers tend to face unique challenges when seeking employment, including age-based discrimination. In recognition of the challenges faced by older workers, several other countries allow older workers to receive more weeks of UI benefits; however, the US does not.
Research Project
This project will compare the experiences and outcomes of older workers in California (defined as workers aged 40 and over) to prime-age workers (defined as workers under 40). It will estimate how the generosity of UI benefits impacts the employment outcomes for these two different groups. The project will also investigate potential reasons why older workers might react differently to more generous UI benefits and describe the implications for the design of UI policies in the US.
Research Team
Professor Till von Wachter (Principal Investigator) and Peter Mannino
Results
Forthcoming