Labor and Transfer Income and Older Women's Work: Estimates From the United States

Abstract

This paper deals with the effects of labor and transfer incomes as determinants of older women's labor force participation. It examines the responsiveness of women aged 48-62 to the level of income available from both work and public transfer programs when deciding between work and nonwork options. The main focus is on whether the availability and generosity of disability-related transfers affects the labor supply of these women. A maximum-likelihood model is estimated separately for heads of household and wives. The results suggest income opportunities have significant effect only on the work choices of wives. The responsiveness to the availability and generosity of public transfers is largest among older, disabled women who have low expected earnings.