Work Incentive and Labor Force Participation after the Senior Citizens Freedom to Work Act of 2000

A larger share of individuals 65 and older have been staying in or returning to the labor force since the late 1980s. Because Social Security was changed from providing incentives for earlier withdrawal from the labor force to providing incentives to remain in the labor market longer, we can expect to find a relationship between the Retirement Earnings Test removal and labor force participation. The findings have implications for welfare policy such that they can increase the portion of older adults who work.