Early Retirement: The End of an Era? Joseph Quinn Department of Economics Boston College Northeastern University Open Classroom 9 February 2011

Early Retirement: The End of an Era? Joseph Quinn Department of Economics Boston College BEANPOT - GO EAGLES!! Northeastern University Open Classroom 9 February 2011

Dora Costa, The Evolution of Retirement, University of Chicago Press, 1998 Labor force participation rates of men aged 65+ and 55-64

Labor Force Participation Rates: Men, by age Year % Change-8%-16%-37%-57%-64%-68%-62% Source: BLS

Labor Force Participation Rates: Actual and Fitted Values,

The New Retirement Environment What Changed since mid-1980s?.

The New Retirement Environment What Changed since mid-1980s? Almost everything!.

The New Retirement Environment What Changed since mid-1980s? Strong economy -- until recently

The New Retirement Environment What Changed since mid-1980s? Strong economy -- until recently Mandatory retirement outlawed

The New Retirement Environment What Changed since mid-1980s? Strong economy -- until recently Mandatory retirement outlawed. Social Security incentives

The New Retirement Environment What Changed since mid-1980s?. Strong economy -- until recently Mandatory retirement outlawed Social Security incentives Employer pension incentives

The New Retirement Environment What Changed since mid-1980s?. Strong economy -- until recently Mandatory retirement outlawed Social Security incentives Employer pension incentives Longevity and health

The New Retirement Environment What Changed since mid-1980s?. Strong economy -- until recently Mandatory retirement outlawed Social Security incentives Employer pension incentives Longevity and health The nature of jobs

The New Retirement Environment What Changed since mid-1980s? Strong economy -- until recently Mandatory retirement outlawed Social Security incentives Employer pension incentives Longevity and health The nature of jobs Improved technology

The New Retirement Environment What Changed since mid-1980s?. Strong economy -- until recently Mandatory retirement outlawed Social Security incentives Employer pension incentives Longevity and health The nature of jobs Improved technology Post-retirement health insurance coverage

The New Retirement Environment What Changed since mid-1980s?. Strong economy -- until recently Mandatory retirement outlawed Social Security incentives Employer pension incentives Longevity and health The nature of jobs Improved technology Post-retirement health insurance coverage Social Security benefit cuts …

The New Retirement Environment What Changed since mid-1980s?. Strong economy -- until recently Mandatory retirement outlawed Social Security incentives Employer pension incentives Longevity and health The nature of jobs Improved technology Post-retirement health insurance coverage Social Security benefit cuts … … although they are rarely described that way

Labor Force Participation Rates: Actual and Fitted Values, 1964 – 2009

Labor Force Participation Rates: Actual and Fitted Values,

Labor Force Participation Rates: Men, By Age Year % Change-8%-16%-37%-57%-64%-68%-62% Year % Change0%-2%19%39%62%64%63% Source: BLS

Labor Force Participation Rates: Men, By Age % Change-8%-16%-37%-57%-64%-68%-62% % Change0%-2%19%39%62%64%63% Source: BLS

Labor Force Participation Rates: Actual and Fitted Values, 1964 – 2009

Labor Force Participation Rates: Women, By Age Year % Change6%-5%-13%-27%-19%-26%-5% Year % Change32%39%55%106%90%124%93% Source: BLS

Labor Force Participation Rates: Women, By Age % Change6%-5%-13%-27%-19%-26%-5% % Change32%39%55%106%90%124%93% Source: BLS

Joseph F. Quinn Department of Economics Boston College Chestnut Hill, MA

Average Annual Change in Labor Force Participation Rate and Females, by Individual Age

Average Annual Change in Labor Force Participation Rate and Males, by Individual Age