To determine whether part-time employment affects the perceived health, life satisfaction and activity of urban retirees, 25 experimental and 30 control subjects were selected randomly from a pool of 98 elderly applicants in a demonstration employment program for retirees. Program participants were hired to perform park maintenance and beautification work for 20 hours per week. Structured interviews conducted at the end of the 6-month program revealed significant, positive effects of paid employment on measures of perceived health and life satisfaction. Only one of the control subjects had found alternative part-time employment 6 months following randomization. These findings suggest that the provision of optional, paid employment opportunities can have demonstrably positive effects upon the well-being of retirees.