Labor market behavior of older workers after job loss

The fast growth of the older population in the U.S. and the large increase in the share of older workers in the labor force has made it important to study the labor market behaviors of older workers. Although many studies have examined the unemployment and re-employment of displaced workers, few of them have focused on older displaced workers. Further study of the displaced older workers' post-displacement labor market behavior is necessary because older workers have an option to retire and their responses to job displacement may be different than their younger counterparts.; This dissertation examines the determinants of older workers' post-displacement decisions to retire or become re-employed focusing on policy variables such as unemployment insurance benefits, social security benefits, and private pensions. A theoretical model is developed to provide predictions regarding the impact of these policy variables on individuals' decision to retire and probability of re-employment. The theoretical predictions suggest that social security benefits and private pensions encourage individuals to retire and decrease the probability of becoming re-employed, and that UI benefits discourage retirement and also decrease the search effort and rate of re-employment.; Empirical findings support the theoretical predictions. It is found that both the receipt of UI benefit and an increase in the weekly benefit amount have a negative impact on re-employment probabilities, social security benefits significantly increase the probability of retirement, and that private pensions significantly increase the retirement probability and decrease the re-employment probability.