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Early Evidence on the Impact of COVID-19 and the Recession on Older Workers

Author

Listed:
  • Truc Thi Mai Bui
  • Patrick Button
  • Elyce G. Picciotti

Abstract

We summarize some of the early effects and discuss possible future effects of the COVID-19 pandemic and recession on the employment outcomes of older workers in the United States. We start by discussing what we know about how older workers faired in prior recessions in the United States and how COVID-19 and this recession may differ. We then estimate some early effects of the COVID-19 pandemic and recession on employment and unemployment rates by age group and sex using Current Population Survey data. We calculate employment and unemployment rates multiple ways to account for the complicated employment situation and possible errors in survey enumeration. We find that while previous recessions, in some ways, did not affect employment outcomes for older workers as much, this recession disproportionately affected older workers of ages 65 and older. For example, we find that unemployment rates in April 2020 increased to 15.43% for those ages 65 and older, compared to 12.99% for those ages 25-44. We also find that COVID-19 and the recession disproportionately affected women, where women have reached higher unemployment rates than men, which was consistent for all age groups and unemployment rate measures we used.

Suggested Citation

  • Truc Thi Mai Bui & Patrick Button & Elyce G. Picciotti, 2020. "Early Evidence on the Impact of COVID-19 and the Recession on Older Workers," NBER Working Papers 27448, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:27448
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    References listed on IDEAS

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    4. David Neumark & Ian Burn & Patrick Button, 2019. "Is It Harder for Older Workers to Find Jobs? New and Improved Evidence from a Field Experiment," Journal of Political Economy, University of Chicago Press, vol. 127(2), pages 922-970.
    5. Courtney C. Coile & Phillip B. Levine & Robin McKnight, 2014. "Recessions, Older Workers, and Longevity: How Long Are Recessions Good for Your Health?," American Economic Journal: Economic Policy, American Economic Association, vol. 6(3), pages 92-119, August.
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    8. David Neumark & Patrick Button, 2014. "Did Age Discrimination Protections Help Older Workers Weather the Great Recession?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(3), pages 566-601, June.
    9. Ian Burn & Patrick Button & Theodore F. Figinski & Joanne Song McLaughlin, 2020. "Why Retirement, Social Security, and Age Discrimination Policies Need to Consider the Intersectional Experiences of Older Women," NBER Working Papers 27450, National Bureau of Economic Research, Inc.
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    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Economic consequences > Employment and Work

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    Cited by:

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    2. Zuojin Yu & Aurora B. Le & Alexa Doerr & Todd D. Smith, 2022. "Level of Concern, Spending, and External Support Related to COVID-19: A Comparison between Working and Non-Working Older Adults," IJERPH, MDPI, vol. 19(18), pages 1-10, September.
    3. Bomikazi Zeka, 2022. "Gendered Poverty Perceptions: How Do Retired Women Fare?," Risks, MDPI, vol. 10(2), pages 1-15, January.
    4. Han, Joseph, 2021. "Who's Hit Hardest? The Persistence of the Employment Shock by the COVID-19 Crisis," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 43(2), pages 23-51.
    5. Tavares, Aida Isabel, 2021. "Working more and less hours, profiling old European workers during first wave of COVID-19 pandemic, evidence from SHARE data," MPRA Paper 111263, University Library of Munich, Germany.
    6. Hoehn-Velasco, Lauren & Silverio-Murillo, Adan & Balmori de la Miyar, Jose Roberto, 2021. "The long downturn: The impact of the great lockdown on formal employment," Journal of Economics and Business, Elsevier, vol. 115(C).
    7. Sumedha Gupta & Kosali I. Simon & Coady Wing, 2020. "Mandated and Voluntary Social Distancing During The COVID-19 Epidemic: A Review," NBER Working Papers 28139, National Bureau of Economic Research, Inc.
    8. Taiyo Fukai & Hidehiko Ichimura & Keisuke Kawata, 2021. "Describing the impacts of COVID-19 on the labor market in Japan until June 2020," The Japanese Economic Review, Springer, vol. 72(3), pages 439-470, July.
    9. Adjognon, Guigonan Serge & Bloem, Jeffrey R. & Sanoh, Aly, 2021. "The coronavirus pandemic and food security: Evidence from Mali," Food Policy, Elsevier, vol. 101(C).
    10. Owen Davis, 2021. "Employment and Retirement Among Older Workers During the Covid-19 Pandemic," SCEPA publication series. 2021-06, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    11. Adjognon,Guigonan Serge & Bloem,Jeffrey R. & Sanoh,Aly, 2020. "The Coronavirus Pandemic and Food Security : Evidence from West Africa," Policy Research Working Paper Series 9474, The World Bank.
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    More about this item

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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