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Work history and U.S. elders' transitions into poverty.
1Department of Agricultural Economics, Pennsylvania State University, University Park, USA. dkk@psu.edu
The Gerontologist
|August 29, 2000
Summary
Elderly poverty risk is influenced by work history and demographics. A stable work history and metropolitan residence can reduce the likelihood of elders transitioning into poverty.
Area of Science:
- Gerontology
- Sociology
- Economics
Background:
- Elderly poverty is a significant concern.
- Understanding factors influencing poverty transitions is crucial for policy development.
Purpose of the Study:
- To examine the predictors of first-time poverty transitions among individuals aged 55 and older.
- To investigate the roles of work history, demographics, marital status, and residence in shaping poverty risks.
Main Methods:
- Utilized 25 years of data from the Panel Study of Income Dynamics (PSID).
- Employed discrete time event history models to analyze transitions into poverty.
- Integrated data on past occupation, work history, marital status, and residential context.
Main Results:
- Work history and preretirement wages were significant predictors of poverty transitions for men and some women.
- A metropolitan residence was associated with a lower probability of entering poverty.
- The protective effect of metropolitan residence persisted even after controlling for various individual and contextual factors.
Conclusions:
- Work history is a critical determinant of economic security in later life.
- Residential context, specifically living in a metropolitan area, offers a protective effect against poverty transitions in old age.
- Findings highlight the importance of sustained employment and place-based factors in elderly poverty prevention.
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