ERIC Number: ED105042
Record Type: RIE
Publication Date: 1974-Nov
Reference Count: 0
The Effect of Income and Wage Rates on the Labor Supply of Older Men and Women.
Garfinkel, Irwin; Masters, Stanley
While static economic theory predicts that most income transfer programs will lead to reductions in the labor supply of program beneficiaries, the theory has nothing to say about the magnitude of such reductions. In order to predict the magnitude of such reductions the labor supply schedule of potential beneficiaries must be known. In three previous papers, estimates for married and single prime age (25-34) men; prime age married and single women, and female household heads; and younger men and women were presented. In this paper, estimates are presented for several groups of older men and women. In the first section of this paper, data are described upon which the analysis is based. The next sections present and discuss the results for the demographic groups. The final section contains a brief summary and conclusion. It is found that, for the most part, the results are consistent with prior expectations. In general, the income effects are negative and the substitution effects are positive. The elasticities for older men and women are larger than those for prime age married men. While the labor supply elasticities of men below retirement age are smaller than those for women, the labor supply elasticities of men over age 65 are generally just as large as those for women. (Author/JM)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Office of Economic Opportunity, Washington, DC.
Authoring Institution: Wisconsin Univ., Madison. Inst. for Research on Poverty.
Note: For a related study, see UD 014 870