Work

The effect of job loss on labor supply, wealth, and spousal labor supply for older workers

Year: 2026

Type: article

Abstract: I study the effect of job loss due to mass layoffs on labor supply, wealth, and spousal labor supply among older workers using high-quality Danish administrative data. Job loss reduces labor earnings, disposable income, and employment across all ages, but short-run losses are largest for older workers. Displaced workers aged 60 to 64 earn 32% less one year after displacement compared to similar non-displaced workers and are more likely to retire and less likely to be homeowners. Job loss also affects partners. While younger partners increase labor supply, older partners are more likely to retire.

Source: Journal of Population Economics

DOI: 10.1007/s00148-026-01205-8

Author: Anne Katrine Borgbjerg

Institution: Aarhus University

Language: English

Topic: Retirement, Disability, and Employment

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty

Open Access status: hybrid

Estimated APC paid: $3,190