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Relative Sizes of Age Cohorts and Labor Force Participation of Older Workers
Michigan Retirement and Disability Research Center, Univ. of Michigan Jan. 22, 2019
"Population aging implies larger relative sizes of older cohorts in coming years. The usual hypothesis is that a large cohort generates 'cohort crowding,' increasing the relative supply of workers in that cohort, depressing their wages, and leading to lower employment and lower labor force participation.... When older cohorts are large relative to a young cohort (ages 16 to 24), the evidence fits the relative supply hypothesis. But when older cohorts are large relative to 25 to 49 year olds, there is a relative demand shift toward older workers."
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