Measuring Work Capacity in Working-Age Adults

This technical report discusses the concept of work capacity, defined as an individual's potential to work, which is independent of actual employment status. It outlines the methodologies used to assess work capacity, focusing on cognitive abilities and their measurement in older populations. The report presents a new measure that correlates individuals' functional abilities with potential job opportunities, aiming to identify which occupations are suitable based on these abilities. It details the data collection process from a nationally representative sample and compares individual abilities to job requirements across various U.S. occupations. The report also examines age-related variations in work capacity and the implications for employment potential. Additionally, it discusses the relationship between health status and work capacity, including regression analyses that link health to labor force participation and subjective probabilities of working past retirement age. The findings suggest that age-related declines in abilities are modest and do not significantly affect job thresholds.