Presentation Title

The Cost of Aging: A Study on the Impact of Age on Unemployment Duration

Advisor Information

Catherine Co

Location

UNO Criss Library, Room 232

Presentation Type

Oral Presentation

Start Date

4-3-2016 1:15 PM

End Date

4-3-2016 1:30 PM

Abstract

In the most recent recession unemployment duration was exacerbated to never seen before levels in the United States. Even as the labor market has recovered in recent years, long-term unemployment remains abnormally high. In order to discover what populations are at the greatest risk for long-term unemployment, this paper investigates how age impacts the length of unemployment. The current literature suggests that, as workers get older, their skillsets diminish and they become more resistant to wage cuts, which results in longer periods of unemployment. This paper builds on this past research to investigate if this theory holds true for the period after the Great Recession. A regression analysis is conducted to examine if this hypothesis can be confirmed empirically. First, a regression analysis is used on the whole unemployed population, which confirms the positive relationship between age and unemployment duration. Further analysis is also conducted after dividing the population into three smaller age cohorts. After performing the same procedure on each cohort, the results show that the conclusion for the entire population is not true of each individual cohort. Age is found to be a significant factor for workers between 25 and 54 years old; whereas it is less of a factor for those outside of this cohort. This paper hopes to offer some insight into why this may be the case.

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COinS
 
Mar 4th, 1:15 PM Mar 4th, 1:30 PM

The Cost of Aging: A Study on the Impact of Age on Unemployment Duration

UNO Criss Library, Room 232

In the most recent recession unemployment duration was exacerbated to never seen before levels in the United States. Even as the labor market has recovered in recent years, long-term unemployment remains abnormally high. In order to discover what populations are at the greatest risk for long-term unemployment, this paper investigates how age impacts the length of unemployment. The current literature suggests that, as workers get older, their skillsets diminish and they become more resistant to wage cuts, which results in longer periods of unemployment. This paper builds on this past research to investigate if this theory holds true for the period after the Great Recession. A regression analysis is conducted to examine if this hypothesis can be confirmed empirically. First, a regression analysis is used on the whole unemployed population, which confirms the positive relationship between age and unemployment duration. Further analysis is also conducted after dividing the population into three smaller age cohorts. After performing the same procedure on each cohort, the results show that the conclusion for the entire population is not true of each individual cohort. Age is found to be a significant factor for workers between 25 and 54 years old; whereas it is less of a factor for those outside of this cohort. This paper hopes to offer some insight into why this may be the case.