Labor Supply of Older Men: Does Social Security Matter?

This article presents evidence of a negative and significant relationship between the level of Social Security wealth and the labor force participation of older men. The empirical analysis utilizes a panel data set containing participation, wage, and Social Security information for cohorts defined by birth year and educational attainment from 1967 to 1996. Increases in Social Security wealth levels are found capable of explaining most of the observed decline in labor force participation rates of older men since 1967.