Workforce Investment Act g by the Trade Adjustment Training for Older Workers: Toward a Better Understanding of Older Worker Needs during the Economic Recovery

摘要

With about two-thirds of their 401(k) portfolios invested in equities, older workers should recognize that the only way to compensate for their decimated assets (in the current economic recession and financial crisis) is to remain in the workforce longer (Munnell, et al., 2009, p. 6). The ongoing economic recession has increased older workers incentives to continue working or return to work, while multiplying the challenges they face to do so. This stark reality contrasts with earlier research reports projecting stable retirement rate trends (National Institute on Aging, 2007; Taeuber and Graham, 2007). At this historical moment, the long-term demographic trend of an aging population means more older workers in the labor force (Zhang, 2008a, 2008b). In the meantime, the current recession similarly pushes older workers to remain in or return to the labor force. As a result, better equipping older workers for the labor market is becoming increasingly important. Older workers and retirees demand for training to remain or regain labor market competitiveness is certain to increase. This has policy implications for Workforce Investment Act (WIA) planning. Building on a book and literature review previously completed (Zhang, 2008a), this research will examine and help inform investments in future WIA services for older worker training. Many employers are concerned about older workers obsolete skill sets, high health insurance and benefit costs. In the meantime, many employers also recognize that older workers or retirees have accumulated years of still valuable experiences, work ethic, mentoring and language skills (Collison, 2003). It is therefore critical to deliver the appropriate level and mix of WIA services for older workers who need training to continue working or to return to work. Relying on the Workforce Investment Act Standardized Record Data (WIASRD) 2007 data and Bureau of Labor Statistics (BLS) unemployment data, this paper adopts a panel data model and empirically examines the impacts of unemployment rates and various WIA services on older workers Entered Employment Rate (EER)1. An innovative two-sector unemployment rate measure is adopted. Older workers demographic and socioeconomic conditions are controlled for in the investigations. Following the finding interpretation and discussions, this paper concludes with policy implications.