Seminar

Why are Older Americans Working more?

Alexey Filatov (Universitat Autònoma de Barcelona and Barcelona GSE)

April 27, 2017, 12:45–14:00

Toulouse

Room MS 003

Brown Bag Seminar

Abstract

Since the mid-eighties, both labor force participation and hours per worker of seniors in US have been growing steadily after a long period of of decline. This paper uses data from the Health and Retirement Study to estimate a life-cycle model in order to explore the relative importance of factors that potentially affect the labor force participation and supply behavior of two different cohorts of the elderly. The paper focuses on the differences in mortality rates, health, out-of-pocket medical expenditures, wages as well as differential policies (changes in normal retirement age and elimination of earnings test) as the potential sources of changes. In the model economy, individuals, who differ by gender and teir education level and face earnings and health shocks, decide how much to work, how much to save and when to claim social security benefits.