New York Fed paper argues for wage insurance

The programme would pay for itself and increase lifetime earnings, researchers say

US dollar

US workers should have wage insurance to compensate them if they transition to lower-paying roles, a Federal Reserve Bank of New York report argues.

“Wage insurance provides income support to displaced workers who find re-employment at a lower wage,” Benjamin Hyman, Brian Kovak and Adam Leive say in the report.  “Because the subsidy amount is proportional to the earnings decline, the policy is designed to shorten unemployment durations by making re-employment more attractive, particularly in

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