Impact of Retirement Populations on Local Jobs and Wages

Abstract

Prior research has suggested that attracting retirement communities to local areas results in job and wage growth. This article examines whether significant growth in local retirement-age populations has led to such job and wage growth. The results suggest that general retirement population growth does create job growth. However, the average wage growth results are mixed. Understanding these economic implications of attracting retirees is necessary for communities to determine how to manage the benefits yet control for the costs of increases in retirement populations.

Understanding Migration Trends to Prepare for the Post-Pandemic Future

“…Most people are aware that millions of baby boomers (born from 1946 to 1964) are retiring each year, but fewer have thought about the opportunity and challenges this will present for maintaining their region's population over the next decade. As the number of retirees climbs nationally, more regions of the country will begin thinking of retirement as an export industry (Shields, Deller, and Stallmann, 2001;Lambert et al, 2007;Hamilton, 2010;Nefs et al, 2013). Just as an export industry sells a product or service globally and puts money into circulation locally, retirees derive their income from federal transfer programs, diversified investments, or pension funds (Poterba, 2014).…”