scholarly journals COVID-19, job loss, and underemployment: who is affected?

2021 ◽  
Vol 58 (1&2) ◽  
pp. 63-91
Author(s):  
Ma. Christina Epetia

This paper seeks to examine the short-term adverse effects of the labor market disruptions caused by the COVID-19 pandemic on employment by estimating and comparing the probability of job loss, underemployment, and employment gain in January, April, and July 2020. Using data from the Philippine Labor Force Survey, we find that the workers who were most vulnerable to job loss and underemployment amid the COVID-19 pandemic are male, less educated, and those working in sectors that are either with limited operational capacity or not allowed to open at all. On a positive note, the results also suggest that males and less-educated individuals are more likely to gain employment after being jobless in the previous quarter. A policy recommendation is to establish an institutionalized social insurance program, such as an unemployment insurance facility, to protect a wider range of workers from the negative shocks to the labor market.

2019 ◽  
Vol 8 (1) ◽  
pp. 67
Author(s):  
Gibran Da Silva Teixeira ◽  
Giácomo Balbinotto Neto ◽  
Pedro Henrique Soares Leivas

This article aims to examine the existence of rule manipulation and moral hazard in the Brazilian Unemployment Insurance Program. For empirical analysis, the rule manipulation test by Cattaneo, Janson and Ma (2016) was used, as well as fuzzy and sharp regression discontinuity. The data was built using data from the National Employment and Unemployment Survey from January 2008 to June 2014 due to the greater homogeneity of the rules for benefit access. Based on the results, the program is an influence on the length of employment of Brazilian workers given the existence of rule manipulation, assessed by the length of stay in the last job. Furthermore, it was found that heads of families and their children were less likely to search for employment. This findings were corroborated when data from the program beneficiaries only was assessed, showing a lower job search probability, between -21.80 p.p. and -15.08 p.p. for the children, and between -39.40 p.p. and -28.50 p.p. for the heads of families. Thus, it is possible to confirm the existence of both rule manipulation the access of the program, as well as moral hazard, which points to the need to restructure the program, and above all, have less influence on the national labor market.


2019 ◽  
pp. 313-340
Author(s):  
Ibrahim Alhawarin ◽  
Irene Selwaness

Jordan has undergone a profound social security reform since 2010, primarily aiming to ensure the financial sustainability of the system over time. Using data from the 2010 and 2016 Jordan Labor Market Panel Survey (JLMPS), this chapter examines the dynamics of Jordanian workers’ access to social security and trends in early retirement incidence before and after the reform. The chapter also explores the time it takes to acquire social security coverage on the labor market before and after the reform. Our findings show that the overall incidence of social insurance coverage slightly increased in 2016, for private sector wage workers, irregular wage workers, and non-wage workers (employers and self-employed). Public sector employees were the most likely to acquire social insurance coverage at the start of their jobs, followed by the private sector wage workers inside establishments. Both men and women who started their first job after the 2010 reform experienced a decline in their probability of acquiring social insurance coverage upon their job start. Moreover, the average incidence of early retirement slightly declined among men while still being highly prevalent around ages 40–46.


2017 ◽  
Vol 4 (3) ◽  
pp. 371-385 ◽  
Author(s):  
Alix Gould-Werth

Using data from in-depth interviews with a diverse group of people who lost jobs between 2007 and 2011, my study identifies the important role of private resource banks—reserves of personal resources such as assets and social connections amassed during more favorable times—following job loss. Without these resources, job losers are unable to move past the struggle to survive and onto recovery (through reemployment, comfortable labor market exit, or buffered labor market failure). Because private resources are unequally distributed by race, Black respondents are less able to leverage these resources toward recovery than their White counterparts. These results suggest that job loss may be a turning point in the life course—like incarceration, childbirth, and eviction—in which racial inequality is magnified and reproduced.


2011 ◽  
Vol 101 (3) ◽  
pp. 23-28 ◽  
Author(s):  
Courtney C Coile ◽  
Phillip B Levine

This paper examines how labor market fluctuations around the time of retirement affect the labor force status and Social Security receipt of individuals ages 55 to 69 and the income of retirees in their 70s, using data from the March Current Population Survey, Census, and American Community Surveys. We find that workers are more likely to leave the labor force, to collect Social Security earlier, and to have lower Social Security income when they face a recession near retirement. The impact is greatest for the less-educated, who are more susceptible to job loss and rely more heavily on Social Security.


2019 ◽  
Vol 686 (1) ◽  
pp. 121-146 ◽  
Author(s):  
Till von Wachter

The Unemployment Insurance (UI) system is the largest general social insurance program for working-age individuals in the United States and currently insures more than 140 million workers against temporary income losses related to unemployment. UI has been the bedrock of U.S. social policy in recessions, but the system has remained largely unchanged since the mid-1970s despite substantial changes in the labor market that include deindustrialization, higher female participation, increases in wage inequality, and technological changes. This article summarizes existing empirical evidence on the state of the UI system and its effectiveness in achieving its stated goals. A range of reform proposals are discussed that aim to address both the well-known, long-term issues with UI, as well as UI’s readiness to support the workforce of the twenty-first century.


2006 ◽  
Vol 20 (3) ◽  
pp. 47-70 ◽  
Author(s):  
Walter Nicholson ◽  
Karen Needels

Ever since the U.S. federal–state system of unemployment insurance was founded in the 1930s, it has provided partial, temporary replacement of wages to eligible workers who lose jobs “through no fault of their own” (as determined by state-level regulations). Unemployment insurance is one of the largest social insurance programs in the United States, with benefits paid totaling about $34 billion in 2004. Economic theory can help us understand the challenges this complex program is likely to face over the next few years. We begin by summarizing the salient characteristics of the unemployment insurance program and then examine the theoretical and econometric research. Much of this research revolves around the main goals of the program, which include: 1) sustaining consumption for workers and their families; 2) helping recipients to make efficient job choices during a period of financial stress; and 3) minimizing the adverse incentives that may accompany partial wage replacement. Of course, these goals can come into conflict—for example, if replacing wages for an unemployed worker also discourages that worker from aggressively searching for or accepting a new job—and our discussion will focus on these conflicts. In conclusion, we address the key policy issues that the unemployment insurance system is likely to face in upcoming years and ways policymakers may be able to use economic analysis to adjust the program so that it remains effective in addressing the needs of unemployed workers.


2021 ◽  
Vol 10 (2) ◽  
pp. e54110212904
Author(s):  
Domingos Isaias Maia Amorim ◽  
Francisco José Silva Tabosa ◽  
Jair Andrade de Araujo ◽  
Ahmad Saeed Khan ◽  
Pablo Urano de Carvalho Castelar

This work provides new estimates of the effect of the Brazilian Unemployment Insurance Program (Programa Seguro-Desemprego) at the national level and disaggregating the data considering urban and rural areas, using data from the National Household Sample Survey (Pesquisa Nacional de Amostra Por Domicílio - PNAD) on individuals for the year 2015. The methodology applied for empirical analysis is the Regression Discontinuity Design (RDD), using added covariates and entropy balancing. Our objective is to analyze if there is an effect of the unemployment benefit on reinsertion wages, and if it there is a positive relationship, based on the theoretical references of the Human Capital Theory and Job Search models. Among the main results found, the unemployment benefit program does not seem to exercise any significant change in the reinsertion wage, except for workers in the rural environment. It was also found that males receive lower reinsertion wages than females, and that the Northeast region of Brazil features the highest reinsertion wages.


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