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Are Traditional Retirements a Thing of the Past? New Evidence on Retirement Patterns and Bridge Jobs

Author

Listed:
  • Kevin E. Cahill
  • Michael D. Giandrea
  • Joseph F. Quinn

    (Boston College)

Abstract

This paper investigates whether permanent, one-time retirements are coming to an end just as the trend towards earlier and earlier retirements did nearly 20 years ago. We explore how common bridge jobs are among today's retirees, and how uncommon traditional retirements have become. Methods: Using data from the Health and Retirement Study (HRS), we explore the work histories and retirement patterns of a cohort of retirees aged 51 to 61 in 1992 over a ten-year time period in both a cross-sectional and longitudinal context. Bridge job determinants are examined using bivariate comparisons and a multinomial logistic regression model of the bridge job decision. Results: We find that one-half to two-thirds of the HRS respondents with full-time career jobs take on bridge jobs before exiting the labor force completely. We also find that bridge job behavior is most common among younger respondents, respondents without defined-benefit pension plans, and respondents at the lower- and upper-end of the wage distribution. Implications: The evidence suggests that changes in the retirement income landscape since the 1980s appear to be taking root. Going forward, traditional retirements will be the exception rather than the rule.

Suggested Citation

  • Kevin E. Cahill & Michael D. Giandrea & Joseph F. Quinn, 2005. "Are Traditional Retirements a Thing of the Past? New Evidence on Retirement Patterns and Bridge Jobs," Boston College Working Papers in Economics 626, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:626
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    References listed on IDEAS

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    1. Christopher J. Ruhm, 1995. "Secular Changes in the Work and Retirement Patterns of Older Men," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 362-385.
    2. Courtney Coile & Jonathan Gruber, 2001. "Social Security Incentives for Retirement," NBER Chapters, in: Themes in the Economics of Aging, pages 311-354, National Bureau of Economic Research, Inc.
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    5. Joseph F. Quinn, 1977. "Microeconomic Determinants of Early Retirement: A Cross-Sectional View of White Married Men," Journal of Human Resources, University of Wisconsin Press, vol. 12(3), pages 329-346.
    6. Samwick, Andrew A., 1998. "New evidence on pensions, social security, and the timing of retirement," Journal of Public Economics, Elsevier, vol. 70(2), pages 207-236, November.
    7. Joseph F. Quinn & Olivia S. Mitchell, "undated". "Social Security on the Table," Pension Research Council Working Papers 96-3, Wharton School Pension Research Council, University of Pennsylvania.
    8. Ruhm, Christopher J, 1990. "Bridge Jobs and Partial Retirement," Journal of Labor Economics, University of Chicago Press, vol. 8(4), pages 482-501, October.
    9. Marjorie Honig & Giora Hanoch, 1985. "Partial Retirement as a Separate Mode of Retirement Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 20(1), pages 21-46.
    10. Jill Quadagno & Joseph Quinn, 1996. "Does Social Security Discourage Work?," Boston College Working Papers in Economics 322., Boston College Department of Economics.
    11. David A. Wise, 2001. "Themes in the Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise01-1, March.
    12. Yung-Ping Chen & John Scott, 2003. "Gradual Retirement: An Additional Option in Work and Retirement," North American Actuarial Journal, Taylor & Francis Journals, vol. 7(3), pages 62-74.
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    Cited by:

    1. David Neumark, 2008. "The Age Discrimination in Employment Act and the Challenge of Population Aging," NBER Working Papers 14317, National Bureau of Economic Research, Inc.
    2. Angelo Lorenti & Christian Dudel & Mikko Myrskylä, 2019. "The Legacy of the Great Recession in Italy: A Wider Geographical, Gender, and Generational Gap in Working Life Expectancy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 283-303, February.
    3. Michael P. Cameron & Peggy Koopman-Boyden & Matthew Roskruge, 2015. "Labour Force Participation, Human Capital and Wellbeing among Older New Zealanders," Working Papers in Economics 15/07, University of Waikato.
    4. Diana Warren, 2008. "Retirement Expectations and Labour Force Transitions: The Experience of the Baby Boomer Generation," Melbourne Institute Working Paper Series wp2008n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Giorgio Brunello & Monica Langella, 2013. "Bridge jobs in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-18, December.
    6. Muhammad Rahman, 2008. "Demographic Uncertainty and Welfare in a Life-Cycle Model Under Alternative Public Pension Systems," CAEPR Working Papers 2008-024, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    7. Bender, Keith A. & Mavromaras, Kostas & Theodossiou, Ioannis & Wei, Zhang, 2014. "The Effect of Wealth and Earned Income on the Decision to Retire: A Dynamic Probit Examination of Retirement," IZA Discussion Papers 7927, Institute of Labor Economics (IZA).
    8. David Warner & Mark Hayward & Melissa Hardy, 2010. "The Retirement Life Course in America at the Dawn of the Twenty-First Century," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 29(6), pages 893-919, December.
    9. Laura Turner & Giovanni Gallipoli, 2011. "Social Security, Endogenous Retirement, and Intrahousehold Cooperation," 2011 Meeting Papers 935, Society for Economic Dynamics.
    10. Muhammad Rahman, 2008. "Demographic Uncertainty and Welfare in a Life-Cycle Model Under Alternative Public Pension Systems," Caepr Working Papers 2008-024, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
    11. Lorenti, Angelo & Dudel, Christian & Myrskylä, Mikko, 2018. "The legacy of the great recession in Italy: a wider geographical, gender, and generational gap in working life expectancy," LSE Research Online Documents on Economics 88302, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Economics of Aging; Partial Retirement; Gradual Retirement;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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