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Late life job displacement
1Department of Economics, University of Connecticut, Storrs 06269, USA. kacouch@uconnvm.uconn.edu
The Gerontologist
|March 21, 1998
Summary
Job displacement significantly impacts older workers, causing substantial earnings and income loss. Displaced workers also face reduced health insurance coverage, with non-Whites experiencing the most severe economic vulnerability.
Area of Science:
- Economics
- Sociology
- Gerontology
Background:
- Late-career job displacement affects workers aged 51-60.
- Understanding the economic consequences for this demographic is crucial.
Purpose of the Study:
- To analyze the financial and health insurance impacts of job displacement on older workers.
- To identify disparities in economic vulnerability following job loss.
Main Methods:
- Utilized data from the 1992 wave of the Health and Retirement Study.
- Examined incidence and outcomes of job displacement for workers aged 51-60.
Main Results:
- Displaced workers experienced an average earnings loss of 39%.
- Household incomes for displaced workers were 24% lower.
- Health insurance coverage decreased by 16% for displaced workers.
- Pension income provided minimal replacement for lost earnings.
- Non-White workers faced the most significant economic hardship post-displacement.
Conclusions:
- Job displacement has severe and lasting economic consequences for older workers.
- Disparities exist, with non-White older workers being particularly vulnerable.
- Policy interventions may be needed to mitigate the effects of job loss in later career stages.