How Do High-Pressure Labor Markets Affect the Retirement Security of Low Earners?
Stipica Mudrazija and Barbara A. Butrica, Urban Institute
While existing research has documented the negative consequences of economic downturns and high unemployment on the long-term financial well-being of workers, it has largely overlooked the impact that tight labor markets may have on low-income workers. Using data from the Panel Study of Income Dynamics and the Health and Retirement Study, this project will assess the impact of high-pressure labor markets during economic expansions on the labor market outcomes of low-income workers, the extent to which these effects dissipate during subsequent high-unemployment periods, and the lifetime effects on future retirement security. These results would improve SSA’s understanding of the connection between economic cycles and the long-term employment prospects and earnings of the most vulnerable beneficiaries.