This is Timothy Taylor:
The proportion of U.S. adults who are “in the labor force” — that is, who either have jobs or are unemployed and looking for a job — has been falling for a decade, as I explored in an April 26, 2012, post on “Falling Labor Force Participation.” But for one demographic group, the elderly, labor force participation is rising substantially. [See the charts below.]
An NCPA reform championed in the early 1990s called for allowing seniors to reach the retirement age and keep on working without losing their Social Security benefits. This idea (which received only lukewarm support from AARP) became part of a slew of pro-growth proposals, was one of five NCPA “tax ideas” that formed the core of the Contract With America and eventually became law. The old law took away 33 cents for every dollar of earnings above a threshold.
Source: United States Census Bureau.