Comments on
“The Insurance Role of Household
Labor Supply for Older Workers”
by Yanan Li and Victoria Prowse
from
Richard W. Johnson
Urban Institute
August 7, 2014
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What Happens When Things Go Bad?
• Private Supports
–
–
–
–
Savings
Private health insurance
Other private insurance policies
Family members
• Public Safety Net
–
–
–
–
Unemployment insurance
Social Security
SNAP/TANF
Medicaid/Medicare
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Probability that Workers Employed at Age 50 Are
Laid off by Age 70, 1992-2012 (%)
45
39
39
40
32
All
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Not HS grad
HS grad
Bachelor's
Postgrad
degree
Median % Change in Monthly Per Capita Family
Income, Long-Term Unemployed, 2008-2011*
25-34
35-49
50-61
62+
-24
* compares income 1
month before spell
and 6 months after
-45
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-43
-42
Percent of Long-Term Unemployed in Poverty,
1 Month before Spell Start and 6 Months Later,
2008-2011
39
34
24
12
11
10
5
25-34
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35-49
50-61
3
62+
Percentage of Long-Term Unemployed Receiving
Income by Age and Source, 2008-2011
25-34
35-49
50-61
62+
78
59
53
46
41
38 38
27
36
28
29
21
18
12
2
UI
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4
Retire, disability
Spouse earnings
Govt transfers
Average Monthly Per Capita Family Income,
Long-Term Unemployed Workers in Middle Half
of Income Distribution, Ages 25-34
$1,500
$459
$1,000
$500
$471
$183
$0
One month before Six months after start of
unemployment starts
spell
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Other
Other govt payments
Family retire/DI
Family earnings
Own retire/DI
Own UI
Own earnings
Average Monthly Per Capita Family Income,
Long-Term Unemployed Workers in Middle Half
of Income Distribution, Ages 50-61
$2,500
$2,000
$606
$1,500
$1,000
$612
$500
$407
$0
One month before Six months after start of
unemployment starts
spell
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Other
Other govt payments
Family retire/DI
Family earnings
Own retire/DI
Own UI
Own earnings
Average Monthly Per Capita Family Income,
Long-Term Unemployed Workers in Middle Half
of Income Distribution, Ages 62+
$3,000
$2,500
$563
$2,000
$474
$1,500
$561
$1,000
$813
$500
$270
$0
One month before Six months after start of
unemployment starts
spell
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Other
Other govt payments
Family retire/DI
Family earnings
Own retire/DI
Own UI
Own earnings
Suggested Extensions
• Provide more info context about spouses’ labor
supply
• Disaggregate more by age
• Is it still appropriate to treat women as
secondary workers?
• Any differences over time?
• SIPP might be a better dataset than PSID
– Interviews conducted every four months
– Larger samples
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