 Minimum wages, retirement timing, and labor supplyMatt Hampton and Evan Totty Journal of Public Economics, 2023, vol. 224, issue C Abstract: We find that minimum wage increases lead to increased employment for low-wage, retirement-age individuals using survey data linked to several decades of individual-level IRS and SSA data. Own-wage elasticity estimates of the employment effect are larger than normal for the minimum wage literature but are consistent with recent evidence on labor supply effects of minimum wages and life-cycle models of labor supply. We also find evidence of delayed permanent employment exit and delayed retirement benefit claiming. The delay in benefit claiming appears to be driven by an interaction between minimum wages and the Social Security earnings test. These results suggest that retirement-age individuals are very responsive to changes in labor market opportunities and that minimum wages may complement Social Security incentives that encourage more work and delayed benefit claiming. Keywords: Minimum wages; Employment; Social Security; Retirement; Labor supply; Linked survey-administrative data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:224:y:2023:i:c:s0047272723001068 DOI: 10.1016/j.jpubeco.2023.104924 Access Statistics for this article Journal of Public Economics is currently edited by R. Boadway and J. Poterba More articles in Journal of Public Economics from Elsevier |
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