Tax Cuts and Wage Growth Boost Labor Participation

Baby boomers will exit the job market at pace slower than feared, says White House adviser

Kevin Hassett, Chairman of the Council of Economic Advisers, speaks during a briefing at the White House in Washington, DC, on September 10, 2018. NICHOLAS KAMM/AFP/Getty Images

WASHINGTON—Some economists worry that aging baby boomers—people born between 1946 and 1964—will shrink labor supply and productivity, as they continue to retire in waves. However, such a worry is exaggerated, as baby boomers will stick around the labor force a lot longer than expected, according to White House economic adviser Kevin Hassett.

Speaking at an event hosted by Axios, Hassett said that the tax cuts had a big impact on baby boomers’ decision to stay in the job market.