Changes in Labor Force Participation of Persons 55 and Over Since World War II: Their Nature and Causes

Abstract

In the United States trends in labor force participation since 1940 have varied widely among age-sex groups in the population 55 and over (Figure 1). Setting aside the temporary World War II upsurge, at one extreme are men 65 and over whose rate of participation trended sharply downward throughout the entire period. The participation rate of men aged 55–64 was fairly constant through the late 1950s, but then started downward and by the 1970s was falling at a rate similar to that of men 65 and over. In contrast to the declining rates for men, rates for older women were either constant or rising. The rate for women 65 and over was virtually unchanged throughout the entire period, remaining at the low level of 10 percent or less. Among women 55–64 labor force participation rose at an unprecedented rate until around 1970, after which it leveled off. At present among persons 55–64, 70 percent of men are in the labor force and about 40 percent of women; among those 65 and over, less than 20 percent of men are in the labor force, and under 10 percent of women.