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Correcting Labor Supply Projections for Older Workers Could Help Social Security and Economic Reform
August 11, 2012
Correcting Labor Supply Projections for Older Workers Could Help Social Security and Economic Reform
Source: Urban Institute
Changing age demographics have powerful implications for the shape of the nation’s work force. Formal models of labor force participation fail to take into account that as the relative supply of younger workers declines, employers will increasingly turn to older workers to meet their demand for labor to provide goods and services. Increased labor force participation among older workers can add to the solvency of Social Security and the broader federal budget. Policymakers in both the public and private sectors can accommodate this trend by removing barriers that discourage hiring and retaining older workers.
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