Trends and Cycles in Labor Force Behavior: Are Older Workers Different from Everyone Else?

David Blau, Ohio State University
Sudipto Banerjee, Ohio State University

Labor force participation (LFP) behavior at older ages has many distinctive features, but some analysts argue that the most important driving forces behind trends in LFP at older ages are broad economy-wide trends that affect all age groups, such as rising economic returns to skill. But LFP trends for men have diverged by age in recent years, with LFP rising at older ages and falling at younger ages. This paper assesses whether recent trends in LFP at older ages are closely related to broader trends affecting the labor market, or are specific to older ages. We focus on three main issues: Can observed differences in trends by age be explained by age-related demographic composition effects, specifically race, ethnicity, education, and marital status? How has the “Great Recession” affected unemployment incidence and duration by age? How have reforms to old age Social Security affected enrollment in Social Security Disability Insurance?