Labor Force Changes and Poverty Among Older Workers
Author Information
Author(s): Callie Freitag, Heather Hill
Primary Institution: University of Wisconsin-Madison
Hypothesis
How do labor force transitions among older adults during the COVID-19 pandemic affect their income and likelihood of entering poverty?
Conclusion
Transitioning out of the labor force is linked to significant income reductions and a higher chance of entering poverty, regardless of the pandemic's impact.
Supporting Evidence
- Labor force transitions are associated with significant income reductions.
- Older adults are more likely to enter poverty when they transition out of the labor force.
- COVID-19 Economic Impact Payments helped protect against income losses.
Takeaway
When older people stop working, they often earn less money and are more likely to be poor, especially during tough times like the pandemic.
Methodology
The study used data from the Current Population Survey March ASEC from 2018-2023 to analyze labor force transitions and their economic consequences.
Participant Demographics
Older adults aged 50 and over.
Statistical Information
Statistical Significance
p<0.05
Digital Object Identifier (DOI)
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