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WP 44 - Early retirement patterns in Germany, the Netherlands and the United Kingdom


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  • Trudie Schils

    (Algemene Economie, Universiteit van Maastricht)


The main research questions dealt with in this paper are: Is the likelihood of early retirement according to the various routes different for different groups within the working population? To what extent do the existence of more flexible and more generous early retirement schemes result in higher entry rates into early retirement for the working population? To what extent does the generosity differ between the various exit routes and between the countries or regime types? This will be analysed using three unique long-running panel studies, i.e. BHPS 1990-2004 (the United Kingdom), the GSOEP 1990-2005 (Germany) and the SEP 1990-2001 (Netherlands). Using a discrete-time competing-risks model the exit patterns of older workers are examined in these three very different countries in terms of their pension and social security systems. The results show that hazards into retirement and social security are significantly highest in Germany and the Netherlands reflecting the institutional support for these exit pathways. In the United Kingdom early exit is most common through the retirement route but restricted to specific ages. Furthermore, the observed differences in retirement hazards are related to the generosity of the routes. Replacement rates of retirement schemes are highest in Germany and the Netherlands while for all countries it is true that social security replacement rates are lower than those of the retirement schemes.

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Bibliographic Info

Paper provided by AIAS, Amsterdam Institute for Advanced Labour Studies in its series AIAS Working Papers with number wp44.

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Date of creation: Jan 2006
Date of revision:
Handle: RePEc:aia:aiaswp:wp44

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  1. Raffaele Miniaci & Elena Stancanelli, 1998. "Microeconometric Analysis of the Retirement Decision: United Kingdom," OECD Economics Department Working Papers 206, OECD Publishing.
  2. repec:ese:iserwp:99-12 is not listed on IDEAS
  3. Sarah Smith & James Banks, 2006. "Retirement in the UK," The Centre for Market and Public Organisation 06/140, Department of Economics, University of Bristol, UK.
  4. Pablo AntolĂ­n & Stefano Scarpetta, 1998. "Microeconometric Analysis of the Retirement Decision: Germany," OECD Economics Department Working Papers 204, OECD Publishing.
  5. Sikandar Siddiqui, 1997. "The pension incentive to retire: Empirical evidence for West Germany," Journal of Population Economics, Springer, vol. 10(4), pages 463-486.
  6. An, M.Y. & Christensen, B.J. & Gupta, N.D., 1999. "A Bivariate Duration Model of the Joint Retirement Decisions of Married Couples," Papers 99-10, Centre for Labour Market and Social Research, Danmark-.
  7. Meghir, Costas & Whitehouse, Edward, 1997. "Labour market transitions and retirement of men in the UK," Journal of Econometrics, Elsevier, vol. 79(2), pages 327-354, August.
  8. D'Addio, Anna Cristina & Rosholm, Michael, 2005. "Exits from temporary jobs in Europe: A competing risks analysis," Labour Economics, Elsevier, vol. 12(4), pages 449-468, August.
  9. Anna Christina D'Addio & Michael Rosholm, . "Left-Censoring in Duration Data: Theory and Applications," Economics Working Papers 2002-5, School of Economics and Management, University of Aarhus.
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