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

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

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

4. Labor Force Participation Rates: Men, by age 55606265687072 Year 195090.684.781.271.757.749.839.3 196092.885.979.856.842.037.228.0 197091.883.973.849.939.430.124.8 197587.676.964.439.423.7 22.6 198084.974.056.835.224.121.317.0 198583.771.050.930.520.515.914.9 % Change-8%-16%-37%-57%-64%-68%-62% 1950-1985 Source: BLS

5. Labor Force Participation Rates: Actual and Fitted Values, 1964-1985

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

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

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

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

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

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

15. 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

16. 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

17. 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

18. 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

19. 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 …

20. 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

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

22. Labor Force Participation Rates: Actual and Fitted Values, 1964-2009

23. Labor Force Participation Rates: Men, By Age 55606265687072 Year 195090.684.781.271.757.749.839.3 196092.885.979.856.842.037.228.0 197091.883.973.849.939.430.124.8 197587.676.964.439.423.7 22.6 198084.974.056.835.224.121.317.0 198583.771.050.930.520.515.914.9 % Change-8%-16%-37%-57%-64%-68%-62% 1950-1985 55606265687072 Year 198583.771.050.930.520.515.914.9 199085.370.552.531.923.417.116.4 199581.168.951.333.522.420.616.0 200079.866.253.035.928.120.218.5 200580.667.757.739.732.223.821.6 200983.469.460.642.533.326.124.3 % Change0%-2%19%39%62%64%63% 1985-2009 Source: BLS

24. Labor Force Participation Rates: Men, By Age 55606265687072 % Change-8%-16%-37%-57%-64%-68%-62% 1950-1985 % Change0%-2%19%39%62%64%63% 1985-2009 Source: BLS

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

27. Labor Force Participation Rates: Women, By Age 55606265687072 Year 197052.644.036.122.115.012.28.6 197551.641.032.919.512.39.07.8 198052.841.331.820.810.89.07.3 198555.541.931.516.212.19.08.2 % Change6%-5%-13%-27%-19%-26%-5% 1970-1985 55606265687072 Year 198555.541.931.516.212.19.08.2 199059.844.834.920.615.211.78.0 199562.247.834.821.514.810.29.5 200065.251.538.723.216.610.910.8 200569.855.744.628.320.616.711.8 200973.258.348.933.423.020.215.8 % Change32%39%55%106%90%124%93% 1985-2009 Source: BLS

28. Labor Force Participation Rates: Women, By Age 55606265687072 % Change6%-5%-13%-27%-19%-26%-5% 1970-1985 % Change32%39%55%106%90%124%93% 1985-2009 Source: BLS

29. Joseph F. Quinn Department of Economics Boston College Chestnut Hill, MA 02467 joseph.quinn@bc.edu

30. Average Annual Change in Labor Force Participation Rate 1965 - 1985 and 1985 - 2009 Females, by Individual Age

31. Average Annual Change in Labor Force Participation Rate 1965 - 1985 and 1985 - 2009 Males, by Individual Age