The Effect of Local Labor Demand Conditions on the Labor Supply Outcomes of Older Americans

34 Pages Posted: 16 Nov 2013

See all articles by Nicole Maestas

Nicole Maestas

Harvard Medical School - Department of Health Care Policy

Kathleen J. Mullen

RAND Corporation

David Powell

RAND Corporation

Multiple version iconThere are 2 versions of this paper

Date Written: September 12, 2013

Abstract

A vast literature in labor economics has studied the relationship between local labor demand shifts and the outcomes of the working age population. This literature has ignored the impacts that these shocks have on older individuals, though there are reasons to believe that the effects are not uniform by age. Using data from the Census and the Health and Retirement Study, the authors measure the effects of local labor demand conditions on a host of outcomes for older individuals including employment, retirement, Social Security claiming, wages, and job characteristics. They find that local labor demand conditions do affect the labor and retirement behavior of the older segment of the population, including Social Security claiming decisions. They also find evidence that older individuals are especially responsive to local labor demand shifts in the service industry, which they show has observably different job characteristics that may be especially attractive to older workers. Similarly, they find evidence that labor demand shocks not only increase the wages of older workers but also make the jobs more attractive on non-pecuniary dimensions.

Suggested Citation

Maestas, Nicole and Mullen, Kathleen J. and Powell, David, The Effect of Local Labor Demand Conditions on the Labor Supply Outcomes of Older Americans (September 12, 2013). RAND Working Paper Series WR-1019. Available at SSRN: https://ssrn.com/abstract=2354793 or http://dx.doi.org/10.2139/ssrn.2354793

Nicole Maestas (Contact Author)

Harvard Medical School - Department of Health Care Policy ( email )

180 Longwood Avenue
Boston, MA 02115
United States

Kathleen J. Mullen

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States
310-393-0411 x6265 (Phone)
310-260-8156 (Fax)

HOME PAGE: http://works.bepress.com/kathleen_mullen

David Powell

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

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