| by Lori Kletzer

Provost and Dean of Faculty Lori Kletzer makes an argument for wage insurance in a Harvard Business Review article published Jan. 25.

A member of the economics faculty at Colby, Kletzer writes: “Typically, workers who lose their jobs can qualify for unemployment insurance, a regular payment to help with the transition. But unemployment insurance ends once you land a new job.” Noting that the new job doesn’t always pay as well, Kletzer writes that “research over the past 15 years shows that lower earnings after a worker regains employment are potentially far more serious and consequential for workers and families than the period in between jobs.”

The article (full text online) responds to President Obama’s State of the Union endorsement of wage insurance—an idea Kletzer advanced 15 years ago in the context of free trade and job loss.