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Early Retirement and Company Characteristics

Author

Listed:
  • Hernæs, Erik

    (The Ragnar Frisch Centre for Economic Research)

  • Iskhakov, Fedor

    (The Ragnar Frisch Centre for Economic Research)

  • Strøm, Steinar

    (Dept. of Economics, University of Oslo)

Abstract

Early retirement decisions derived from a structural model with economic incentives and firm workforce changes, are estimated on Norwegian linked household and firm data. For households in which the wife is the first to become eligible for early retirement, the impact on early retirement of a reduction in the firm workforce is stronger relative to economic incentives than is the case for men, in particular in the private sector. Both for men and women, also an expansion of the firm workforce implies a higher retirement probability.The eligibility age in the early retirement programme has gradually been reduced from 66 in 1989 to 62 in 1998. We find that the economic incentives relative to the push factor have become more important, both for men and women, the lower the eligibility age is.

Suggested Citation

  • Hernæs, Erik & Iskhakov, Fedor & Strøm, Steinar, 2006. "Early Retirement and Company Characteristics," Memorandum 16/2006, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2006_016
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2006/Memo-16-2006.pdf
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    References listed on IDEAS

    as
    1. Steinar StrØm & John K. Dagsvik, 2006. "Sectoral labour supply, choice restrictions and functional form," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 803-826.
    2. Mark Y. An & Bent Jesper Christensen & Nabanita Datta Gupta, 2004. "Multivariate mixed proportional hazard modelling of the joint retirement of married couples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 687-704.
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    Cited by:

    1. Hernæs, Erik & Zhu, Weizhen, 2009. "Pension Entitlements and Wealth Accumulation," Memorandum 12/2007, Oslo University, Department of Economics.

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    More about this item

    Keywords

    Early retirement; demand side and supply side factors; microeconometric models; heterogeneity;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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