OLDER WORKERS

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP90-00530R000300600002-6
Release Decision: 
RIFPUB
Original Classification: 
K
Document Page Count: 
9
Document Creation Date: 
December 22, 2016
Document Release Date: 
October 10, 2012
Sequence Number: 
2
Case Number: 
Publication Date: 
October 1, 1988
Content Type: 
MISC
File: 
AttachmentSize
PDF icon CIA-RDP90-00530R000300600002-6.pdf722.69 KB
Body: 
Declassified and Approved For Release 2012/10/10: CIA-RDP90-00530R000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP90-00530R000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Summary indicators on working women-Continued (Date are seasonally adjusted unless otherwise indicated. numbers are in thousands.) Average (mean) number of weeks unemployed women have been looking for work ............ Married women, husband present: Civilian noninstitutional population ............ 51,318 51,690 51,986 51,442 51,594 Civilian labor force participation rate .......... 53.0 52.8 52.9 53.7 53 6 Unemployment rate ........................ 5.8 5.8 5.5 5.7 . 5.8 Women who maintain families: Civilian noninstitutional population ............ 10,175 10,005 9,910 10,281 10 298 Civilian labor force participation rate .......... 60.9 61.3 60.6 60.6 , 61.5 Unemployment rate ........................ 10.1 10.1 10.3 10.4 10.5 NOTE: Due to rounding, and independent seasonal adjustment, some components may not add to totals. Unemployment rates for midlife and older women are typically well below the rates for other women. Once unemployed, however, women 45 and older have a somewhat harder time finding a job. In the second quarter of 1985, they had been looking for work an average of 17.8 weeks compared with 13.8 weeks for those 20 to 44 years of age. Employed women, in general, are predomi- nantly in "white-collar jobs," but the oldest women are less likely to be in these occupations- 59 percent of those 65 and older, compared with about 65 percent below age 55. A smaller propor- tion of older women hold clerical/administrative support jobs, while a larger proportion are sales- women, reflecting the greater availability of part- time hours in the retail trade. Another notable difference is the substantially higher proportion of older women than younger women in service jobs, a difference due largely to the greater con- centration of the older women in private house- hold and personal service work. OLDER WORKERS Older Workers and Their Work Patterns* This section provides an overview of the status of older workers. The characteristics of the older worker population are described-how many there are, their unemployment levels, patterns of employment, and prospects for future employ- ment. The section also discusses the decision to retire or keep working-incentives, disincentives, and optional work roles, such as volunteerism. The discussion then turns to special older worker populations-displaced workers, women, minori- ties, and the handicapped-and their problems. This section concludes with a statement of the four issues that have emerged as a focus for devel- oping actions by employers, government, and the community to address older worker needs. Older Workers: Who They Are Older workers encompass a wide age group- 40 years and older according to the Age Discrim- ination in Employment Act, 45 years and older according to the Department of Labor defini- tions, and 55 years and older (the age group most likely to leave the labor force). Older workers Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 LJ ~ Labor are not homogeneous; they include several special populations facing different problems. There are displaced older workers, who have lost their jobs and have no prospects of returning to them; dis- advantaged workers (such as minorities, women, and those with health impairments); older work- ers facing retirement pressures due to. skills obso- lescence, pension incentives, and work force re- duction plans; and retirees seeking to reenter the work force. The status of older workers in gen- eral, and the employment problems faced by spe- cial groups, can be important to employers, poli- cymakers, and community groups seeking to address older worker needs, since these needs will be different for each population. Millions of Workers 1980 Age (years) Men Women 45-54 55-64 65 plus 9.91 7.16 1.88 7.07 4.59 1.14 Labor Force Participation, 1980 Age (years) Men Women 45-54 91.2% 60.9% 55-64 72.3 41.5 65 plus 19.1 8.1 Source: Bureau of Labor Statistics In 1980, over 18.9 million men and 12.8 mil- lion women were older workers according to the U.S. Department of Labor definition, which in- cludes all those over 45 years of age who are employed., self-employed, or looking for work. In general, older workers are considered in three groups: those aged 45-54, who are still high on their earnings curve; those aged 55-64, who are beginning to drop out of the labor force (most for early retirement-planned or as a result of layoff-but some because of ill health); and those aged 65 and over (a much smaller number). The 32 million older workers in 1980 are ex- pected to rise to 38 million in 1995, with the greatest growth being in the age range 45-54. The Department of Labor expects the number aged 45-54 years to grow from 17 million in 1979 to 24 million in 1995 as the "war baby" generation ages. At the same time, the percentage of older men who remain in the labor force is expected to continue its 30-year decline and the percentage of older women who remain is ex- pected to continue its increase. (More than half of all women are now in the labor force, and the percentage will continue to increase, but the major part of the increase is in younger age groups, according to Sandell, 1983a.) Unemployment Until 1981, unemployment rates for older workers had remained fairly low; in 1980, the rate was 4%, in contrast to 7% overall. In addi- tion, although special populations within the older worker group suffered from underemploy- ment (worked part time or worked for only part of the year), almost all men aged 45-64 who were employed in 1981 worked full time, as did almost three-quarters of employed women in that age group. This overall pattern of full-time work and lower unemployment, however, does not mean an absence of problems. The unemployment rate does not include those who drop out of the labor force, and the dropout rate is high for older work- ers, for whom layoff tends to become unplanned retirement (Rupp, Bryant, and Mantovani, 1983). For those older workers who stay in the labor force, a spell of unemployment typically lasts longer than it does for younger workers. For example, half of the men aged 55-64 who were unemployed in late 1982 were out of work for more than 13 weeks (Department of Labor, 1983). Some unemployed older workers have ex- hausted both unemployment benefits and per- sonal savings but are not eligible for any federally funded benefit except Food Stamps. These work- ers are of great concern, not only because of their need for financial support, but also because of their higher rate of emotional and medical prob- Percent Unemployed 1982 Age (years) Men Women 55-64 65 plus 6.5 5.3 5.1 3.9 Source: Bureau of Labor Statistics Percent of All Those Working, 1981 Age (years) Men Women Working full time Age 45-64 years 94.5 74.6 Age 65 years plus 52.3 40.4 Working part time Age 45-64 years 5.5 25.4 Age 65 years plus 47.7 59.6 Source: Bureau of Labor Statistics Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 7.58 lems. Disadvantaged workers, particularly those with little education, may be unable to find work unless they can get training in marketable skills. Displaced workers may be limited in their ability to move to areas that have employment opportu- nities for their existing skills because they have exhausted all assets except their home, for which no buyer can be found. Employment When laid-off older workers get new jobs, they tend to get a lower wage than they received in the previous job (Shapiro and Sandell, 1983). This is ascribed less to age discrimination than to the fact that they tend to have company-spe- cific experience, not all of which is relevant to the new firm, rather than recent training in the latest techniques. In addition, older workers who keep their jobs face the problem that employers see their skills as obsolete because so much time has passed since they were trained (Andrisani and Daymont, 1983). Employers also tend to of- fer older workers fewer opportunities for train- ing, at least in part because most older workers get higher wages than younger ones, and the time taken for training thus costs the employers more (Andrisani and Daymont, 1983). When retired workers seek to reenter the work force, whether because inflation has eroded their income or for other reasons, they often do not find full-time work at desirable wages. Because of pension restrictions, the Tax Equity and Fiscal Responsibility Act (TEFRA), Employees Retire- ment Income Security Act (ERISA) provisions, and Social Security earnings limitations, most post-retirement workers are limited to part-time work, usually less than 1,000 hours per year. Although there are no exact figures on how many post-retirement workers are self-employed, ob- servers generally perceive that the number is ris- ing. Improving Prospects for Employment There is no systematic range of opportunities that would allow those older workers who are out of work, working for wages too low to live on, or working only part time, to improve their lot. The Comprehensive Employment Training Act (CETA) and the Senior Community Service Employment Program (SCSEP) were underused by older adults, although participation in either one had the effect of increasing the number of weeks worked (Rupp, Bryant, and Mantovani, Labor Average Duration of Unemployment, 1980 (weeks) Age (years) Men Women 55-64 65 plus 21.6 16.9 19.9 13.1 Source: Bureau of Labor Statistics Percent of Unemployed Receiving Training Age (years) Men Women Displaced workers Age 25-44 3.8% 7.2% Age 45 plus 3.5 1 7 Other Age 25-44 4.4 . 5.5 Age 45 plus 2.3 1.8 Source: Bureau of Labor Statistics 1983b). Training slots in CETA programs were often seen-by program operators and the com- munity-as being aimed primarily at the young (Reesman, Rupp, and Mantovani, 1983). Ac- cording to Rupp et al. (1983), fewer than 1% of those over 45 who met CETA eligibility re- quirements received CETA training. An even smaller percentage of those eligible for the SCSEP participated. Finally, the Age Discrimination in Employ- ment Act, although it has changed corporate practices in dealing with men and women aged 40-70, has not eliminated age discrimination. The number of grievances filed with the Equal Employment Opportunity Commission (EEOC) charging age discrimination has risen 75% over the last 3 years, to 10,000. (The number of griev- ances filed is not a clear reflection of the incidence of age discrimination, but it is some indication that age discrimination continues to be per- ceived.) The Decision to Retire or Keep Working The decisions of individuals to keep working past 65, to retire at 65, or to retire early have a very large aggregate effect 'on the Social Secu- rity system and on public and private pension funds. For that reason, considerable attention has been paid to the factors that influence these deci- sions' that appear to have such influence include size of current wage, the ownership of assets or a vested pension of significant size, ex- Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Labor pectations about inflation, availability of suitable work arrangements, and availability of desirable alternatives, such as volunteer work. The Department of Labor expects older men to continue their pattern of early retirement and declining participation in the work force, and expects a decline for women over 65 as well, but at a slower rate. At the same time, the declin- ing rate of participation by men over 65 is some- what deceptive, since the number of men alive beyond 65 increased from 7.6 million in 1960 to 10.1 million in 1981, so that a decline in the participation rate is not necessarily a decline in actual numbers. Furthermore, the decline is not constant across all occupations or all wage levels. Low-wage laborers show a greater decline in la- bor force participation with age that is partly accounted for by the increase in the number re- ceiving disability benefits (Sandell, 1983b). Working beyond 65 is most frequent in wholesale and retail trade and in services and least frequent in mining and transportation, according to Mor- rison (1983). Other factors may influence the labor partici- pation decision. For example, older workers who are laid off, particularly because of the decline of an industry or a plant closing, tend to retire Percent of Sample Working Stated Hours per Week, 1978 0-15 0.8% 4.1% 15-25 1.6 6.9 25-35 3.4 9.4 35-41 51.1 63.5 41-46 13.6 5.8 46-56 19.0 6.7 56 plus 10.5 3.7 Source: Jondrow, Brechling, & Marcus (1983) early, not because they planned to but because retirement is preferable to the kinds of jobs avail- able to them (Johnson et al., 1983). Also, Sandell points out that, for many older married women, continuing in the labor force will not give them a Social Security retirement benefit above what they would receive as the spouse of a worker covered by Social Security (Sandell, 1983a). Therefore, older wives may have little incentive to continue working if their husbands retire. Polls indicate that many workers would like to stay on at their same job and wage if they could work fewer hours-an option not generally available. Jondrow, Brechling, and Marcus (1983) concluded that employers find part-time workers to be more costly per hour and less pro- ductive than full-time workers. The most com- mon kind of part-time work is self-employment; part-time work for others is most common in agriculture, finance, insurance, real estate, and in personal service. In a study of volunteerism among older adults, Jusenius (1983) found that the rate of volunteer- ing among older adults was about one in five and that it did not differ by income level, race, or ethnicity, but that it did increase among men with level of education and level of income-pro- ducing assets, and among women with level of education and previous level of volunteer work. It appears that early retirement does not benefit society by resulting in increased volunteer work. In addition to personal incentives and disin- centives that affect the decision to retire or to continue working (dislike of the job, for exam- ple), there are a variety of laws and regulations that affect individual situations. For lower in- come workers, the ability to receive at least some income at age 62 is an incentive to retire. For higher income workers, there may be mandatory retirement at 65 or a pension system that encour- ages early retirement. Eligibility for and Participation in CETA 11-B Percent of U.S. Population Age Range Eligible Participating 14-21 17.6 1.20 22-44 14.1 0.58 45-54 9.7 0.17 55-61 10.8 0.10 62-64 8.9 0.05 65-70 9.6 0.03 71 plus 12.0 0.01 Source: Rupp et al. (1983). Median Time to Next Job (weeks) Age (years) Men Women Displaced worker Age 25-44 13 16 Age 45 plus 20 21 Other - Age 25-44 9 11 Age 45 plus 13 19 Source: Johnson, Dickinson, & West (1983) Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP90-00530R000300600002-6 Incentives for continued work include the ab- sence of any other source of income or possible. source of support. For example, Rupp, Bryant, and Mantovani (1983b) found that unemployed eligible adults over 45 tended not to participate in CETA (or SCSEP) if they lived in larger fami- lies, but did if they were single or widowed, living alone or in a small family. Disincentives to continued work include the Social Security earnings test, the ability'of com- panies to deny accrual of pension after age 65, and the legislation that requires employers to provide private health-care coverage for workers aged 65-69 if they provide health-care coverage for any workers. The extra cost of health insur- ance is not expected to lower the number of jobs available to older workers by more than 1% (An- derson, Kennell, and Sheils, 1983), because em- ployers will compensate for the added cost (13% of compensation) by wage or benefit reductions. However, the reduction in wages or benefits re- duces the reward for continuing to work. (Those persons who are still working at and beyond 65 are not, in general, those who are in ill health and heavy consumers of Medicare, so that the employer's health-care plan may not be as impor- tant to them as it would be to young workers with minor children, who often reject a job with- out health care benefits.) In a study of the way employers view older workers, Paul (1983) found that employers per- ceived the Social Security earnings test to be a significant disadvantage in employing post-retire- ment workers on a temporary or part-time basis since workers would stop working when they had reached the annual limit. In addition, work- ers under age 65 who work part time- are often precluded by their employers from working more than 1,000 hours in a year so that they need not be included in pension coverage under the ERISA. All these factors that seem to push and pull older workers into early retirement, however, may be less important then expectations of lon- gevity and expectations of inflation. On the aver- age, the 65-year-old white male in 1979 could expect to live to be 79 and the 65-year-old whit female could expect to live to be 83; blacks could expect to live to be 77 and 82, respectively. Be- cause of these increases in longevity and because of expectations of the future rate of inflation, there was a tendency in 1980 for fewer workers to indicate that they planned to retire early (Meier, 1980). In particular, those with fixed pen- sions see inflation as a severe threat. Labor Nobody should be forced to retire if he/she wants to work and can still do a good job 90% Most employers discriminate against older peo- ple and make it hard for them to find work 78% Would prefer to retire at or after age 65 (asked of those 55-64) Would prefer working part time instead of retiring completely Younger adults 75% Adults 55-64 79 Adults 65+ still at work 73 Source: Louis Harris and Associates (1981) If labor force participation rates increase among older workers, the overall immediate ef- fect on the labor force would not be great. Simu- lations by Storey (1982) suggest that if the man- datory retirement age had been raised from 65 to 70 in 1973, the size of the labor force would have increased very little. According to Fields and Mitchell, staying in the labor force would be encouraged most by policies that lowered So- cial Security benefits for early retirement and in- creased the gain from deferred retirement (Fields and Mitchell, 1983), but these measures would induce the average worker to delay retirement by no more than 3 months. In addition, such measures would penalize those older workers with a lower life expectancy and a concomitant need to retire early. It appears that measures that change the corporate culture (Paul, 1983) might be more effective in raising the number of individual decisions to keep working. Displaced Workers Recent research suggests that displaced work- ers do face more severe problems as they become older (Shapiro and Sandell, 1983). Displaced workers of all ages are more likely to engage in job search than workers laid off for cause or those who quit a job. Managers and clerical per- sonnel generally can shift to different industries, or even different occupations; craftsmen are more likely to find new jobs in the same industry; and even-with laborers, there is some indication that those who are 45-54 years old are as likely to find new jobs as those at the youngest end of the labor force. There is some wage reduction in the new job, but it appears to be related more to the discount applied to their company-specific Declassified and Approved For Release 2012/10/10: CIA-RDP90-00530R000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP9O-0053OR000300600002-6 Labor experience rather than being a matter of age dis- crimination. Men over 65, however, do experi- ence a decline in wages in the new job that is not accounted for by the discounting of their company-specific experience (Shapiro and San- dell, 1983). Women The evidence is less clear for women (Kohen, 1983; Clark, 1983). Women's earnings on the average never rise as high as men's earnings; the earnings curve is flatter throughout their working life. However, it peaks later than the curve for men (age 55 rather than age 50) and declines more slowly. There is disagreement over whether this pattern results from a combination of age discrimination and discrimination against women, or whether it results from the cumulative effect that women's historical lack of access to training opportunities on the job has over a work- ing life. However, working women may also have :.iifferent work patterns; in a population of Michi- gan workers, 43% of the men but only 16% of the women worked more than 40 hours a week (Jondrow, Brechling, and Marcus, 1983). Minorities Earnings curves for minority men appear to have the same shape as those for white men, but appear to be lower at all points along the curve. This trend is ascribed to the initial effects of racism on education and on early experience on the job. There is some evidence that the dis- parity between the earnings of minority men and those of white men decreases slightly for older workers. What appears to happen is that valued minority men are kept on and treated in ways that are statistically similar to the ways white men are treated, while the less valued minority workers either drop out altogether or find them- selves in a succession of low-wage jobs. The ef- fect, then, is not one of a combination of age discrimination and racism, but of racism primar- ily. Handicapped The evidence for the handicapped is scant, but it does tend to confirm an increasing penalty (lower wages, decreased employability) with age (Kohen, 1983). The reason for this effect is not clear. However, Clark (1983) finds that the earn- ings of those with health limitations peak sooner and decline more with age than the average. In addition, although being physically handicapped is positively associated with CETA eligibility, it is negatively associated with CETA participation among those over 45 (Rupp, Bryant, and Manto- vani, 1983b). The Future The labor force is witnessing a slow change in the number of older participants. Few workers over the age of 65 are deciding to remain in the work force at present, because of incentives to retire, as well as industrial change that makes continued employment or adaptation difficult. However, both the increase in the number of aged and shifting business and government con- cerns about pension costs and labor supply sug- gest that changes may occur in employer views toward encouraging retirement and in older workers' desire to remain on the job. Neverthe- less, as this discussion shows, there are many worker groups whose special employment prob- lems need to be systematically examined in devel- oping new older worker employment policies and practices. Four basic issue areas emerge as a focus for developing actions to address older worker needs, whether the population of concern is displaced, disadvantaged, in the work force, or trying to reenter after retirement, as Section III will show. The following table summarizes issues in these four areas. New views of benefits and compensa- tion policies and practices, work arrangements, education and retraining opportunities, and mar- keting and placement assistance can help expand older worker employment options. How Many Will Want Jobs? The number of adults over ~5 who were em- ployed rose from 14.1 million in 1970 to 14.5 million in 1980. Another half-million adults over 55 were unemployed in 1980, not counting those classified as "discouraged workers." Percentage Out of the Labor Force in 6 Months After Applying for Employment Services Age (years) Displaced workers Age 25-44 3.8 10.4 Age 45 plus 17.4 16.4 Other Age 25-44 7.7 13.2 Age 45 plus 15.3 19.0 Source: Johnson, Dickinson, & West (1983) Declassified and Approved For Release 2012/10/10: CIA-RDP9O-0053OR000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Summary of Older Worker Populations and Employment Issues Benefits and Compensation Work Arrangements Education/ Retraining Workers at or near re- Companies rarely offer Part-time work is most Rarely offered by em- tirement incentives to stay on. , common option, but ployers; adult ed. only rarely at same job public sector pro- and wage. gram for those em- ployed. Displaced workers Loss of seniority affects No special work ar- Needed, but should wages in new job. rangements needed build on existing ex- or available. pertise. Disadvantaged workers May not be adequate to Underemployment Needed, but not often allow for retirement (part-time work) is taken advantage of; planning; no incen- common. rarely offered by em- tive to keep working ployers. if any alternative available. Retirees seeking to Pension, TEFRA, and Part-time work most reenter labor force Social Security earn- common option; self- ings limits are disin- employment increas- centives. ing. Between 1980 and June of 1982, the purchas- ing power of the consumer's dollar dropped by 14%. As the country recovers from its most re- cent recession, many older adults may find that pension amounts earned before the years of high inflation are no longer enough to support early retirement, and may stay on the job. Discouraged older workers and retirees may also decide to reenter the labor force in considerable numbers. But that will be only a small change compared with the change that will occur as the "baby boom" generation ages. Labor Statistics The following tables have been carefully se- lected from The Handbook of Labor Statistics specifically for human resource managers. Each table begins with the earliest reliable data and ends with 1983. The information and tables in- cluded in this section are: Labor Force and Employment Status: 2. Employment status of the civilian noninstitu- tional population by sex, 1970-83 ................ 4. Civilian labor force by sex, race, and age, 1970-83 .......................................................... 5. Civilian labor force participation rates by sex, race, and age, 1970-83 .......................... Employment: 15. Employed civilians by sex, race, and age, 1970-83 .......................................................... Labor Marketing and Placement Marketing to change employer attitudes could help. Active job seekers, need real supper Few programs availa- Utility demonstrated. ble. but demands knows, edge of employee needs and business conditions. 17. Employed civilians by occupation, sex, race, and Hispanic origin, 1983 ............................. 19. Employed civilians by industry and occupa- tion, 1982-83 ................................................. 23. Employed civilians with a job but not at work by reason for not working, 1970-83 Unemployment: 25. Major unemployment indicators, 1970-83 26. Unemployed persons by sex, race, and age, 1970-83 ............ y ............................................ 27. Unemployment rates by sex, race, Hispanic origin, and age, 1970-83 ............................... 28. Unemployment rates by sex and marital sta- tus, 1970-83.......7 ........................................... 29. Unemployed persons and unemployment rates by occupation, 1982-83 ....................... 30. Unemployed persons and unemployment rates by industry, 1970-83 ......... :.................. 35. Unemployed jobseekers by sex, age, race, and jobsearch methods used, 1976-83......... Family Relationship and Weekly Earnings Data: 36. Unemployment in families by type of family, race, Hispanic origin, and presence of em- ployed family members, 1982-83 ................. 39. -Median weekly earnings of families by type of family, number of earners, race, and His- panic origin, 1979-83 .................................... 41. Median weekly earnings of full-time wage and salary workers by selected characteris- tics, 1979-83 .................................................. Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 Tomorrow in Brief Video Phones: Popular Gift in 1990? A new video telephone, transmit- ting full-color images over con- ventional phone lines, may sub- stantially reduce businesses' teleconferencing costs. A simplified version for use at home will probably soon follow, says the manufacturer, UVC Corp of Irvine, California. Mean- while, The Futures Group of Glastonbury, Connecticut, fore- casts that prices of slow-scan picture phones will drop to under $200, making them a popular gift item in 1990. Printed books will be sent via phone, using high- speed laser printers (250 pages in 6-8 minutes) and easy-to-use binding systems. For Movie Buffs Movie fans now have a for their vacations. Ins just touring studios, th their performance. U Studios has introduc ite Enterprise crewm perform in a seven-mi from a Star Trek scri Shatner and Leonard ers to "experience" such special effects as earthq explosions, collapsing br -and floods. "Sources, Tomorrow in Brief" on page 55 of this issue. Global-Food Stamps An international food-stamp pro- gram could be a less-costly alter- native to traditional food relief and farm programs, according to University of Minnesota econ- omist Willis L. Peterson. Under his plan, the poor in developing countries would receive free food stamps, funded by the world's richest nations. The stamps would be used to pur- chase food from local vendors, who could then exchange the stamps for hard currency to buy food stocks from either local markets or the world market. This scheme could improve world food prices and would likely cost less than current farm- income support and food-aid programs, Peterson claims. common-cold virus is fight- tiviral drugs from in- to prevent the virus CONVERSE. INC. New materials in shoe return up to 50% of athlete's expended energy. mean a 3- to 5-minute reduction in a marathon runner's time or a 1-inch increase in a basketball player's vertical leap. Athletes may also experience fewer in- juries and less fatigue, allowing them to work out longer and more safely. Natural Sources For Safe Chemicals Researchers believe safe ag- ricultural chemicals will be de- rived from plants and animals. Chemicals made from fungi, for instance, have the "potential to repel disease-causing organ- isms, regulate plant growth, and serve as human drugs similar to penicillin," says plant physiol- ogist Hank Cutler of the U.S. De- partment of Agriculture. A new generation of natural agricultural chemicals holds great promise, says Cutler, because "they work against specific targets, are ex- tremely potent, and, because they're biodegradable, don't pose environmental hazards." Cold adapts, blocking the ability of drugs to bind. "It's as if the cold virus sticks out its arm - like a running back fending off a tack- ler," says one researcher. The team hopes that further research into the atomic structure of vi- ruses can bring modern medicine closer to curing the common cold. rsity researcher Michael Rossman works on a model of a Declassified and Approved For Release 2012/10/10: CIA-RDP90-0053OR000300600002-6 The latest advance in shoe engineering is "energy return"- that is, the ability of an athletic shoe to return the wearer's ex- pended energy. Energy return is measured by how much pres- sure a material pushes back, rather than absorbing, when it is pressed. For instance, Con- verse, Inc., claims its new "En- ergy Wave" shoe returns 50% of an athlete's expended energy. Such "spring" in the step could Soybean Fuel for Buses Soybean oil-based alcohol fuel is a possible substitute for diesel fuels both in the city and in the country. City buses that run on diesel are a major contributor to air pollution; get rid of diesel, and you get rid of smoke, says Carroll E. Goering, a University of Illinois agricultural engineer. Goering estimates that the use of alterna- tive fuels could cut diesel-fuel use in half on farms, reducing reliance on imported oil as well as cutting pollution. Soybean oil reacts with ethanol to form ester, which burns like diesel, only more cleanly. However, there e currently no ester plants in d virus-rhinovirus 14 and that the virus A