How has the percentage of Americans
who work changed over time, and how do
workers' gender, age, and racial or 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
push minority workers toward early retirement.
Yet older Hispanic men often continue working
because they are ineligible for Social Security
benefits.
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; 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.
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.
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.
How does volunteering influence the well-being of retirees?
Volunteering enhances life satisfaction and improves health. It also protects against the loss of role identity that can result from leaving work.
