Wage Subsidies and the Labor Supply of Older People: Evidence from Singapore's Workfare Income Supplement Scheme

39 Pages Posted: 2 Oct 2014 Last revised: 19 Oct 2014

See all articles by Tiago Freire

Tiago Freire

University of Canberra; Roberts Capital Advisors LLC

Date Written: October 1, 2014

Abstract

An increasing body of literature considers population aging and labor markets, focusing on the dynamics of older workers’ labor market participation. Singapore introduced the Workfare Income Supplement Scheme in 2007, targeting low-income, older workers. Previous studies show that labor force participation drops significantly after the age of 45. We examine whether a wage subsidy program can increase the labor supply of these older workers. Using Hong Kong as a control group in a difference-in-difference-in-difference approach, we find that this program increased labor force participation for women aged 60 to 64 by 3.1 to 5.5 percentage points.

Keywords: Labor Supply, Quasi-Natural Experiment, Wage subsidy, Singapore

JEL Classification: J14, J22

Suggested Citation

Miguel de Abreu Freire, Tiago Alexandre, Wage Subsidies and the Labor Supply of Older People: Evidence from Singapore's Workfare Income Supplement Scheme (October 1, 2014). Available at SSRN: https://ssrn.com/abstract=2503850 or http://dx.doi.org/10.2139/ssrn.2503850

Tiago Alexandre Miguel de Abreu Freire (Contact Author)

University of Canberra ( email )

Canberra, Australian Capital Territory 2601
Australia

HOME PAGE: http://Www.tiagofreire.com

Roberts Capital Advisors LLC ( email )

1350 Avenues of the Americas, Fl2
New York, NY 10019
United States

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