The puzzle of later male retirement
AbstractFor decades until 1985, the share of older American men who worked for pay trended downward. Since 1985, though, that share has been stable or rising. By 2001, the new trend in male retirement behavior had added 2 million workers to the U.S. labor force. Since the number of older men in the United States will increase dramatically as the baby-boom generation ages, the new trend could become even more significant for the U.S. economy in the future.> Understanding male retirement behavior is important to both monetary and fiscal policymakers. Later retirement affects monetary policy by increasing potential output. It also affects fiscal balances by boosting tax revenues and reducing the cost of earnings-tested benefits such as Disability Insurance and Medicaid.> Economists have put forth several theories to explain why American men are retiring later. One theory is that Social Security reforms have encouraged older men to work more. Another is that the decline in the number of workers with defined-benefit pensions has enabled men to continue working longer. A third theory is that the slower growth of the overall U.S. labor force has increased older men’s employment opportunities.> Johnson tests whether these theories explain the changed male retirement trend. He concludes that Social Security reforms have increased the labor supply of men aged 65 and older, but that the abrupt change in the trend of male retirement ages in 1985 remains a puzzle.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Federal Reserve Bank of Kansas City in its journal Economic Review.
Volume (Year): (2002)
Issue (Month): Q III ()
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeff Dominitz & Charles F. Manski & Jordan Heinz, 2002.
"Social Security Expectations and Retirement Savings Decisions,"
NBER Working Papers
8718, National Bureau of Economic Research, Inc.
- Jeff Dominitz & Charles F. Manski & Jordan Heinz, 2002. "Social Security Expectations and Retirement Savings Decisions," JCPR Working Papers 273, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Andrew A. Samwick, 1998.
"New Evidence on Pensions, Social Security, and the Timing of Retirement,"
NBER Working Papers
6534, National Bureau of Economic Research, Inc.
- Samwick, Andrew A., 1998. "New evidence on pensions, social security, and the timing of retirement," Journal of Public Economics, Elsevier, vol. 70(2), pages 207-236, November.
- Jonathan Gruber & Peter Orszag, 2000. "Does the Social Security Earnings Test Affect Labor Supply and Benefits Receipt?," NBER Working Papers 7923, National Bureau of Economic Research, Inc.
- Joseph F. Quinn, 1999. "Has the Early Retirement Trend Reversed?," Boston College Working Papers in Economics 424, Boston College Department of Economics.
- Steven Haider & David Loughran, 2001. "Elderly Labor Supply: Work or Play?," Working Papers 01-09, RAND Corporation Publications Department.
- Alan L. Gustman & Thomas L. Steinmeier, 1998. "Changing Pensions in Cross-Section and Panel Data: Analysis with Employer Provided Plan Descriptions," NBER Working Papers 6854, National Bureau of Economic Research, Inc.
- Todd E. Clark & Taisuke Nakata, 2006. "The trend growth rate of employment : past, present, and future," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 43-85.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LDayrit).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.