Better Jobs, Longer Working Lives: Proposals to Improve the Low-Wage Labor Market for Older Workers

A study from the Brookings Institution reports that a serious rethink about what ages should be considered when discussing the extension of working lives is in order, when accounting for workforce nonparticipation among Americans in their 50s. In the U.S. policy dialogue about working longer, ages 67 and 70 stand out as benchmarks, yet issues with working longer begin much earlier for a large number of employees — by 10 or more years for many. In the long term, policymakers should push for a labor market in which workers of all ages, including those lacking college degrees, can get decent jobs that offer adequate pay, sustainable schedules, and the flexibility for workers to care for themselves and their families. Such a labor market would be expected to produce lower rates of job turnover for lower-wage workers in their 50s. Lower turnover would cut the number of people who retire early due to job loss, and who cannot find another suitable job. Longer and more stable employment histories would consequently deliver higher Social Security retirement benefits and retirement savings. Better jobs would therefore raise both the probability and the value of working longer.