Wage Subsidies and the Labor Supply of Older People: Evidence from Singapore's Workfare Income Supplement Scheme

Tiago FREIRE

Research output: Contribution to journalArticle

Abstract

An increasing body of literature considers population aging and labor markets, focusing on the dynamics of older workers’ labor market participation. Singapore introduced the Workfare Income Supplement (WIS) scheme in 2007, targeting low-income, older workers. Previous studies show that labor force participation drops significantly after the age of 45. We examine whether a wage subsidy program can increase the labor supply of these older workers. Using Hong Kong as a control group in a difference-in-difference-in-difference approach, we find that this program increased labor force participation for women aged 60–64 by 3.1–5.5% points, but had no statistically significant impact on the labor supply of men.
Original languageEnglish
Pages (from-to)1101-1139
Number of pages39
JournalSingapore Economic Review
Volume63
Issue number5
DOIs
Publication statusPublished - 2018
Externally publishedYes

Fingerprint

Older people
Older workers
Workfare
Income
Labor supply
Wage subsidies
Singapore
Labor force participation
Population aging
Labour market
Targeting
Hong Kong
Low income
Labour market participation
Difference-in-differences-in-differences

Cite this

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Wage Subsidies and the Labor Supply of Older People: Evidence from Singapore's Workfare Income Supplement Scheme. / FREIRE, Tiago.

In: Singapore Economic Review, Vol. 63, No. 5, 2018, p. 1101-1139.

Research output: Contribution to journalArticle

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