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Trade Adjustment Assistance as a Model for Unemployment Insurance Reform Howard Rosen National Academy of Social Insurance January 19, 2006.

Published byAlaina Malone Modified over 8 years ago

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Presentation on theme: "Trade Adjustment Assistance as a Model for Unemployment Insurance Reform Howard Rosen National Academy of Social Insurance January 19, 2006."— Presentation transcript:

1 Trade Adjustment Assistance as a Model for Unemployment Insurance Reform Howard Rosen National Academy of Social Insurance January 19, 2006

2 Howard Rosen Trade Adjustment Assistance Coalition Trade Adjustment Assistance Assists workers who lose their jobs due to increased imports or shifts in production Provides more assistance than under traditional UI and WIA Federal entitlement program

3 January 19, 2006 Howard Rosen Trade Adjustment Assistance Coalition TAA Eligibility Criteria Decrease in production/employment Increase in imports or shift in production Increase in imports or shift in production “contributed importantly” to decline in employment Secondary workers

4 January 19, 2006 Howard Rosen Trade Adjustment Assistance Coalition Assistance Additional 78 weeks of income support (conditioned on enrollment in training) Training Health Care Tax Credit Wage Insurance (ATAA) Job Search Assistance Relocation Assistance

5 January 19, 2006 Howard Rosen Trade Adjustment Assistance Coalition Wage Insurance Workers over 50 years old Take a new jobs within 26 weeks of separation New job pays less than $50,000 and less than old job Wage insurance will provide 50 % of the difference for up to 2 years Maximum assistance of $10,000 over 2 years

6 January 19, 2006 Howard Rosen Trade Adjustment Assistance Coalition Health Care Tax Credit Worker has access to health insurance coverage COBRA State high risk insurance pools Worker pays IRS 35 percent of premium IRS pays 65 percent of premium

7 January 19, 2006 Howard Rosen Trade Adjustment Assistance Coalition Changes in US Labor Market Higher labor force participation Structural factors more important; cyclical factors less important Unemployment rate down Unemployment duration up Increased turnover

8 January 19, 2006 Howard Rosen Trade Adjustment Assistance Coalition Job Gains and Losses by Industry

9 January 19, 2006 Howard Rosen Trade Adjustment Assistance Coalition UI Reform Proposals Shift to federal program Allow voluntary contributions Expand eligibility criteria for assistance Wage Insurance Health Care Tax Credit Established tax-deferred saving for unemployment and retraining

10 January 19, 2006 Howard Rosen Trade Adjustment Assistance Coalition 1615 Q Street, NW Suite 305 Washington, DC 200009 202-265-8555 Web site: www.TAACoalition.comwww.TAACoalition.com E-mail: Rosen@TAACoalition.com

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