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Analyst Proposes Personal Employment Accounts

By Staff Writer

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NU Online News Service, April 1, 2005, 4:39 p.m. EST

A researcher at the National Center for Policy Analysis, Dallas, wants to apply the personal account concept to a new social problem.[@@]

The government should encourage workers to keep their jobs and find new jobs quickly by setting up a “personal employment account” program, according to a paper published by the NCPA and written by William Conerly, an NCPA senior fellow.

The government would organize the program by putting a portion of payroll taxes in investment accounts that workers would own and control, Conerly writes in the paper.

Workers could take out money when they were unemployed and add any money remaining in their accounts when they retire to their retirement assets, Conerly writes.

Conerly notes that, under the current system, many part-time workers get no unemployment benefits and that other workers get no value from the system unless they file unemployment claims.

Studies have shown that workers who get bonuses for finding new jobs quickly find work much faster than workers who simply get traditional unemployment benefits, Conerly reports.