President Obama Proposes Wage Insurance Program

Wage insurance is a program that attempts to help permanently displaced workers transition to employment rapidly, effectively, and equitably.  Because displaced workers have been found to suffer substantial earnings losses when they become reemployed, a wage insurance program provides a temporary wage supplement that partially reduces the wage loss experienced by targeted, newly reemployed workers.  While participating workers receive a “wage supplement,” the program is called “wage insurance” because of its design as a social insurance program rather than an income transfer program. A working paper from Institute visiting scholar Stephen Wandner  explores the development of wage insurance as a policy option in the United States and proposals that have had varying goals and designs.

Read "Wage Insurance as a Policy Option in the United States," by Stephen Wandner