Working Paper: NBER ID: w24576
Authors: Courtney Coile
Abstract: Over the past two decades, labor force participation rates for older men have been rising, reversing a century-long trend towards earlier retirement. Participation rates for older women are rising as well. A number of theories have been put forward to explain the rise in participation at older ages, including improving mortality and health, increasing education and a shift towards less physically demanding work, and changes in employer-provided benefits and Social Security. This paper documents trends in labor force participation and employment at older ages and in the factors that may be contributing to rising participation. A review of these trends and of the relevant literature suggests that increases in education, women’s growing role in the economy, the shift from defined benefit to defined contribution pension plans, and Social Security reforms all likely played some role in the trend towards longer work lives.
Keywords: No keywords provided
JEL Codes: J14; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Improvements in health and longevity (I14) | Rising labor force participation rates (J49) |
| Increase in educational attainment (I21) | Rising labor force participation rates (J49) |
| Shift from defined benefit (DB) to defined contribution (DC) pension plans (H55) | Longer median retirement age (J26) |
| Changes in social security provisions (increase in FRA and DRC) (H55) | Longer work lives (J29) |
| Rising women's participation in the workforce (J21) | Men's participation in the workforce (J29) |