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Pension Benefits and the Decline in Elderly Male Labour Force Participation

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  • W. J. MERRILEES

Abstract

This paper uses time‐series econometric methods to unravel the causes of the secular decline in the labour force participation rate of males aged 65 years and over. The study finds that most of the sharp and sudden decline in the participation rate during 1972–76 is atria but able 10 more generous age pension benefits, with minor support from the discouraged worker effect associated with the current recession. A key feature of the model is the inclusion of several social security policy variables, apart from the value of the old‐age pension. These policy variables include the ‘free area’ means test limit and the 1976 switch from a means to an income test.

Suggested Citation

  • W. J. Merrilees, 1983. "Pension Benefits and the Decline in Elderly Male Labour Force Participation," The Economic Record, The Economic Society of Australia, vol. 59(3), pages 260-270, September.
    • Handle: RePEc:bla:ecorec:v:59:y:1983:i:3:p:260-270
    DOI: 10.1111/j.1475-4932.1983.tb00814.x
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    References listed on IDEAS

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    1. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-134, February.
    2. Carmichael, Jeffrey & Hawtrey, Kim, 1981. "Social Security, Government Finance, and Savings," The Economic Record, The Economic Society of Australia, vol. 57(159), pages 332-343, December.
    3. Yates, Judith, 1981. "An Analysis of Asset Holdings in Australia by Income Class," Working Papers 53, University of Sydney, School of Economics.
    4. John Helliwell & Peter Boxall, 1978. "Private Sector Wealth: Quarterly Estimates for use in an Aggregate Model," The Economic Record, The Economic Society of Australia, vol. 54(1), pages 45-64, April.
    5. Feldstein, Martin S, 1974. "Social Security, Induced Retirement, and Aggregate Capital Accumulation," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 905-926, Sept./Oct.
    6. Jeffrey Carmichael & Kim Hawtrey, 1981. "Social Security, Government Finance, and Savings," The Economic Record, The Economic Society of Australia, vol. 57(4), pages 332-343, December.
    7. Jeffrey Carmichael & Kim Hawtrey, 1980. "Social Security, Debt Finance, and Savings," RBA Research Discussion Papers rdp8005, Reserve Bank of Australia.
    8. Helliwell, John F & Boxall, Peter, 1978. "Private Sector Wealth: Qtrly Estimates for Use in an Aggregate Model," The Economic Record, The Economic Society of Australia, vol. 54(145), pages 45-64, April.
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    Cited by:

    1. J. P. Cox, 1986. "Economic Growth and Income Support Policy in Australia," The Economic Record, The Economic Society of Australia, vol. 62(3), pages 268-285, September.
    2. David Black & Yi‐Ping Tseng & Roger Wilkins, 2010. "The Decline In Male Employment In Australia: A Cohort Analysis," Australian Economic Papers, Wiley Blackwell, vol. 49(3), pages 180-199, September.
    3. Clark, Randolph Lee. & Anker, Richard,, 1989. "Labour force participation rates of older persons: an international comparison," ILO Working Papers 992728813402676, International Labour Organization.
    4. repec:ilo:ilowps:272881 is not listed on IDEAS
    5. David Black & Yi-Ping Tseng & Roger Wilkins, 2009. "Examining the Role of Demographic Change in the Decline in Male Employment in Australia: A Propensity Score Re-weighting Decomposition Approach," Melbourne Institute Working Paper Series wp2009n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Rachel Ong & Gavin Wood & Melek Cigdem, 2013. "Work incentives and decisions to remain in paid work in Australia," Bankwest Curtin Economics Centre Working Paper series WP1312, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    7. Jeff Borland, 2005. "Transitions to Retirement: A Review," Melbourne Institute Working Paper Series wp2005n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    8. A. D. Woodland, 1987. "Determinants of the Labour Force Status of the Aged," The Economic Record, The Economic Society of Australia, vol. 63(2), pages 97-114, June.
    9. Steven Kennedy & Alicia Da Costa, 2006. "Older men bounce back: the re-emergence of older male workers," Economic Roundup, The Treasury, Australian Government, issue 4, pages 31-43, November.

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