Effect of Unemployment Shock at Older Ages on Food Insecurity.

• In Event: Access and Obstacles: Policy in Practice for Individuals with Disabilities

Abstract

Unemployment shocks at older ages can trigger long-lasting adverse effects, particularly through pathways such as depleted savings, limited re-employment opportunities, and inadequate access to public support programs. This study investigates the causal impact of late-career unemployment on food insecurity among older adults—a critical, yet underexplored, dimension of economic vulnerability. Using data from the Survey of Income and Program Participation (SIPP) from 2013 to 2017, we focus on individuals aged 50 to 65, leveraging monthly employment histories and food assistance participation to capture dynamic effects of job loss.
To identify causal effects, we implement the difference-in-differences estimator with multiple time periods proposed by Callaway and Sant’Anna (2021), allowing for treatment at varying times and appropriately controlling for staggered adoption. Our control group comprises individuals not yet affected by unemployment during the analysis window.
The findings reveal that unemployment significantly increases the likelihood of food insecurity, with effects that persist for more than a year following job loss. This persistence is particularly pronounced for individuals aged 55 to 60, highlighting a critical window of vulnerability prior to traditional retirement age.
Our findings emphasize the urgent need for policy interventions targeted at aging workers—particularly in the form of extended unemployment benefits and strengthened nutritional safety nets. As the U.S. population continues to age, ensuring economic stability during late-career disruptions is crucial to promoting long-term well-being and reducing preventable hardship in retirement.

Author

• Ehsan Mohaghegh Dowlatabadi, Syracuse University
  Presenting Author