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Can Social Security Explain Trends in Labor Force Participation of Older Men in the United States?

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  • David M. Blau
  • Ryan M. Goodstein

Abstract

After a long decline, the Labor Force Participation Rate (LFPR) of older men in the United States leveled off in the 1980s, and began to increase in the late 1990s. We examine how changes in Social Security rules affected these trends. We attribute only a small portion of the decline from the 1960s–80s to the increasing generosity of Social Security over this period. Increases in the Full Retirement Age and the Delayed Retirement Credit explain one quarter to one half of the recent increase in the LFPR. Increasing educational attainment and increasing LFPR of married women also contributed to the recent rise.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 45 (2010)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:45:y:2010:i2:p328-363

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Noelia Bernal & Frederic Vermeulen, 2014. "The Impact of an Increase in the Legal Retirement Age on the Effective Retirement Age," De Economist, Springer, Springer, vol. 162(2), pages 115-145, June.
  2. Aylit Tina Romm & Martha Wolny, 2012. "The Impact of Later Retirement Ages on Aggregate Household Savings and Saving Rates: An Analysis of OECD Countries," Working Papers, Economic Research Southern Africa 269, Economic Research Southern Africa.
  3. Blake, Hélène & Sangnier, Marc, 2011. "Senior activity rate, retirement incentives, and labor relations," Economics Discussion Papers, Kiel Institute for the World Economy 2011-3, Kiel Institute for the World Economy.
  4. repec:hal:wpaper:halshs-00564950 is not listed on IDEAS
  5. Luc Behaghel & David M. Blau, 2010. "Framing social security reform: Behavioral responses to changes in the full retirement age," PSE Working Papers, HAL halshs-00564950, HAL.
  6. Frank van Erp & Niels Vermeer & Daniel van Vuuren, 2013. "Non-financial determinants of retirement," CPB Discussion Paper, CPB Netherlands Bureau for Economic Policy Analysis 243, CPB Netherlands Bureau for Economic Policy Analysis.
  7. Nicole Maestas & Julie Zissimopoulos, 2010. "How Longer Work Lives Ease the Crunch of Population Aging," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 24(1), pages 139-60, Winter.
  8. Johan Fourie, 2012. "The wealth of the Cape Colony: Measurements from probate inventories," Working Papers, Economic Research Southern Africa 268, Economic Research Southern Africa.
  9. Lorenzo Burlon & Montserrat Vilalta-Bufí, 2014. "Technical progress, retraining cost and early retirement," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 963, Bank of Italy, Economic Research and International Relations Area.
  10. Ignacio Álvarez & Natalia da Silva & Álvaro Forteza & Ianina Rossi, 2012. "Incentivos y patrones de retiro en Uruguay," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(2), pages 219-271.

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