A Micro-level Analysis of Recent Increases in Labor Force Participation among Older Workers

Aggregate data reveal a sizable increase in labor force participation rates since 2000 among workers on the cusp of retirement, reverting back to levels for older men not seen since the 1970s. These aggregate numbers are useful in that they document overall trends, but they lack the ability to identify the reasons behind workers’ decisions. The Health and Retirement Study (HRS) spans the last dozen years from 1992 to 2004, includes two cohorts of retirees, and provides micro-level data regarding these recent trends. Moreover, the HRS contains information on older Americans and the types of jobs they are taking (full-time versus part-time, self-employed versus wage-and-salary, low-paying versus high-paying, blue collar versus white collar, etc.). This study capitalizes on the richness of the HRS data and explores labor force determinants and outcomes of older Americans, with an emphasis on retirees' choices in recent years. We present a cross-sectional and longitudinal description of the financial, health, and employment situation of older Americans. We then explore retirement determinants using a multinomial approach to model gradual retirement and a two-step approach to model the work-leisure and hours intensity decisions of older workers. Evidence suggests that the majority of older Americans retire gradually, in stages, and that younger retirees continue to respond to financial incentives just as their predecessors did. In addition, recent macro-level changes appear to have blurred the distinction between younger and middle-aged retirees.Economics of Aging, Partial Retirement, Gradual Retirement

An Update on Bridge Jobs: The HRS War Babies

Are today’s youngest retirees following in the footsteps of their older peers with respect to gradual retirement? Recent evidence from the Health and Retirement Study (HRS) suggests that most older Americans with full-time career jobs later in life transitioned to another job prior to complete labor force withdrawal. This paper explores the retirement patterns of a younger cohort of individuals from the HRS known as the “War Babies.” These survey respondents were born between 1942 and 1947 and were 57 to 62 years of age at the time of their fourth bi-annual HRS interview in 2004. We compare the War Babies to an older cohort of HRS respondents and find that, for the most part, the War Babies have followed the gradual-retirement trends of their slightly older predecessors. Traditional one-time, permanent retirements appear to be fading, a sign that the impact of changes in the retirement income landscape since the 1980s continues to unfold.Economics of Aging, Partial Retirement, Gradual Retirement

The Role of Re-entry in the Retirement Process

To what extent do older Americans re-enter the labor force after an initial exit and what drives these “unretirement” decisions? Retirement for most older Americans with full-time career jobs is not a one-time, permanent event. Labor force exit is more likely to be a process. Prior studies have found that between one half and two thirds of career workers take at least one other job before exiting from the labor force completely. The transitional nature of retirement may be even more pronounced when considering the impact of re-entry. This paper examines the extent to which older Americans with career jobs re-entered the labor force. The analysis is based on data from the Health and Retirement Study (HRS), an ongoing, longitudinal survey of older Americans that began in 1992. We examined the retirement patterns of a subset of 5,617 HRS respondents who were on a full-time career job at the time of the first interview. Logistic regression was used to explore determinants of re-entry among those who initially exited the labor force. We found that approximately 15 percent of older Americans with career jobs returned to the labor force after initially exiting. Respondents were more likely to re-enter if they were younger, were in better health, or had a defined-contribution pension plan. This research provides empirical evidence of how older Americans are utilizing bridge jobs as they transition from career employment, and that re-entry may be an important part of the work experience of older Americans.Economics of Aging, Partial Retirement, Bridge Jobs, Gradual Retirement

Self-Employment Transitions among Older American Workers with Career Jobs

What role does self-employment play in the retirement process? Older Americans are staying in the labor force longer than prior trends would have predicted and many change jobs later in life. These job transitions are often within the same occupation or across occupations within wage-and-salary employment. The transition can also be out of wage-and-salary work and into self employment. Indeed, national statistics show that self employment becomes more prevalent with age, partly because self employment provides older workers with opportunities not found in traditional wage-and-salary jobs, such as flexibility in hours worked and independence. This paper analyzes transitions into and out of self employment among older workers who have had career jobs. We utilize the Health and Retirement Study, a nationally-representative dataset of older Americans, to investigate the prevalence of self employment among older workers who made a job transition later in life and to explore the factors that determine the choice of wage-and-salary employment or self employment. We find that post-career transitions into and out of self employment are common and that health status, career occupation, and financial variables are important determinants of these transitions. As older Americans and the country as a whole face financial strains in retirement income in the years ahead, self employment may be a vital part of the pro-work solution.Retirement, Retirement Transitions, Self Employment

Iterated conditional expectations

AbstractConsider the probability space ([0,1),B,λ), where B is the Borel σ-algebra on [0,1) and λ the Lebesgue measure. Let f=1[0,1/2) and g=1[1/2,1). Then for any ε>0 there exists a finite sequence of sub-σ-algebras Gj⊂B (j=1,…,N), such that putting f0=f and fj=E(fj−1|Gj), j=1,…,N, we have ‖fN−g‖∞<ε; here E(⋅|Gj) denotes the operator of conditional expectation given σ-algebra Gj. This is a particular case of a surprising result by Cherny and Grigoriev (2007) [1] in which f and g are arbitrary equidistributed bounded random variables on a nonatomic probability space. The proof given in Cherny and Grigoriev (2007) [1] is very complicated. The purpose of this note is to give a straightforward analytic proof of the above mentioned result, motivated by a simple geometric idea, and then show that the general result is implied by its special case

Challenges and Opportunities of Living and Working Longer

This paper describes the challenges and opportunities that older Americans face, with a focus on retirement income security and the role of continued work later in life. We begin with an overview of the new world of retirement income security in America, including a discussion of how a low return environment (e.g., low interest rates) exacerbates existing retirement income security challenges. We then document how older Americans have responded to the evolving retirement income landscape, especially when and how they exit the labor force, and we explore how continued work later in life can help mitigate some of the anticipated retirement security challenges. We then pose some important outstanding questions. The implications of societal aging depend in large part on how we harness or squander the labor resources of older Americans

Ultrasound imaging in teaching cardiac physiology.

This laboratory session provides hands-on experience for students to visualize the beating human heart with ultrasound imaging. Simple views are obtained from which students can directly measure important cardiac dimensions in systole and diastole. This allows students to derive, from first principles, important measures of cardiac function, such as stroke volume, ejection fraction, and cardiac output. By repeating the measurements from a subject after a brief exercise period, an increase in stroke volume and ejection fraction are easily demonstrable, potentially with or without an increase in left ventricular end-diastolic volume (which indicates preload). Thus, factors that affect cardiac performance can readily be discussed. This activity may be performed as a practical demonstration and visualized using an overhead projector or networked computers, concentrating on using the ultrasound images to teach basic physiological principles. This has proved to be highly popular with students, who reported a significant improvement in their understanding of Frank-Starling's law of the heart with ultrasound imaging. </jats:p