Mental health and the labor force participation of older workers.

Abstract

Over the past 20 years, while mortality rates have dramatically declined, the prevalence of work-related stress has increased. This phenomenon suggests that the population's physical health has improved, but mental health has deteriorated. Concomitantly, fewer older workers are participating in the labor force. Our paper, using data from the Epidemiologic Catchment Area (ECA) program, assesses whether the decline in numbers of older workers is linked to the increasing prevalence of job-related stress. Our results indicate that symptoms of poor mental health are the most important determinants of work behavior. Surprisingly, economic and demographic characteristics appear to have little impact on an individual's labor force participation status. Further research is needed, however, because the ECA data provides insufficient information to accurately assess the relative importance of both mental health and economic factors on the retirement decision.

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