1. How has the percentage of Americans who work changed over time,
and how do workers' gender, age, and racial/ethnic group affect their employment
rate?
From 1970 until 1990 there was a steady decline in labor force participation
among men in the United States. In the past decade this trend has come to a
halt and there is even a slight increase in work among older men. The trends
for women are more difficult to discern. Although some older women retire early,
others enter the labor force in middle age and continue to work well into old
age. Racial and ethnic differences in employment histories over the life course
create different patterns of labor force participation in middle and old age.
Higher rates of unemployment among minority workers compared to white workers
pushes them toward early retirement. Yet older Hispanic men often continue working
because they are ineligible for Social Security benefits. 2. What are the employment prospects for older workers, and how are
they affected by age discrimination?
Some older workers choose to remain in full-time jobs but others prefer to scale
down their work efforts. Bridge jobs span the period between full-time employment
in a career job and permanent retirement. The expansion of contingent work provides
some opportunities for older workers, but currently most of these jobs are at
the bottom of the labor market and do not take advantage of older workers' special
skills. Although the Age Discrimination in Employment Act of 1967 banned discrimination
against workers aged 40 to 65, it contains many loopholes that allow employers
to discriminate against older workers. Employers often prefer to hire younger
workers who have lower salaries. Some employers also mistakenly assume that
older workers are less productive than younger workers. Yet research shows that
older workers are more reliable and more loyal to their employers. 3. What economic forces cause workers to withdraw from the labor force?
During the 1970s and 1980s low economic growth and high unemployment rates led
to many older workers withdrawing from the labor force. Early retirement was
especially common in manufacturing industries, in which many older workers were
laid off or lost their jobs. Firms also tried to encourage older workers to
retire by offering early retirement incentive programs. Then a recession in
the 1990s pushed more college-educated, white-collar workers out of the labor
force. By the end of the 1990s, however, these trends were reversed. A booming
economy created more job opportunities for older workers, and the result has
been a decline in early retirement. 4. How do individuals decide when to retire?
Within the constraints imposed by the economy, people time their retirement
on the basis of a desire to trade work for leisure. The timing of the retirement
decision is determined by such factors as the rules of the job, the meaning
of work, health, expected income, and a spouse's employment plans. 5. What personal factors are associated with an individual's relative
satisfaction in retirement?
Satisfaction in retirement partly depends on lifestyle factors. People with
adequate income, good health, and a social support system are most likely to
be satisfied in retirement. People who retire unwillingly are least likely to
be satisfied. Women who retire for family reasons such as caring for an aging
parent or ailing spouse are the most dissatisfied. | 
2002 McGraw-Hill Higher Education