Recent trends in the relative economic status of older adults

Contrary to theoretical expectations and previous empirical research based on modernization and aging theory, this study demonstrates that there has been no decline in the relative income of the older population from 1945 to 1980. Furthermore, recent increases in the relative earnings of older workers between 1967 and 1977 are documented, independent of structural changes in educational and occupational levels. Rather than representing a reversal of previous trends, conceptual and measurement issues appear to account for the differences in findings. Although each older cohort does experience a decline in relative earnings between 1967 and 1977, newer cohorts entering old age have higher relative earnings than the older cohorts whom they replace, accounting for aggregate improvements in relative earnings.