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Older Workers’ Employment and Social Security Spillovers through the Second Year of the COVID-19 Pandemic

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  • Gopi Shah Goda
  • Emilie Jackson
  • Lauren Hersch Nicholas
  • Sarah Stith

Abstract

The COVID-19 pandemic triggered a large and immediate drop in employment among US workers, along with major expansions of unemployment insurance and work from home. We use Current Population Survey and Social Security application data to study employment among older adults and their participation in disability and retirement insurance programs through the second year of the pandemic. We find ongoing improvements in employment outcomes among older workers in the labor force, along with sustained higher levels in the share no longer in the labor force during this period. Applications for Social Security disability benefits remain depressed, particularly for Supplemental Security Income. In models accounting for the expiration of expanded unemployment insurance, we find some evidence that the loss of these additional financial supports resulted in an increase in disability claiming. Social Security retirement benefit claiming is approximately 3 percent higher during the second year of the pandemic.

Suggested Citation

  • Gopi Shah Goda & Emilie Jackson & Lauren Hersch Nicholas & Sarah Stith, 2022. "Older Workers’ Employment and Social Security Spillovers through the Second Year of the COVID-19 Pandemic," NBER Working Papers 30567, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30567
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    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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