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The sooner, the better? Analyzing preferences for early retirement in European countries

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Author Info

  • Didier Blanchet

    ()
    (INSEE institut national de la statistique et des études économiques)

  • Thierry Debrand

    ()
    (IRDES institut for research and information in health economics)

Abstract

Individual preferences concerning retirement age are strongly differentiated both within and between countries. According to the Share survey, the proportion of workers aged from 50 to 65 who wished to retire as soon as possible in 2004 ranged from 31% in the Netherlands to 67% in Spain. Such a preference for early retirement can depend on both financial and non financial factors. Non financial factors include working conditions, health status and mortality expectations. Economic or "monetary" factors essentially correspond to the magnitude of pension entitlements and how they depend upon retirement age. Entitlements that depend positively on retirement age should reduce the motivation to retire as soon as possible. This paper compares the role of these different factors by combining individual data from the Share survey with macroeconomic indicators of pension entitlements recently produced by the OECD. Health and work conditions come out as strong determinants of the preference for early retirement. Being generally satisfied with one's work leads to a drop of approximately 16 percentage points in the probability of wishing to retire as soon as possible. Declaring oneself in bad or very bad health has a positive effect on this probability of a comparable order of magnitude. However, these non financial factors do not significantly contribute to the explanation of cross-country differentials. Conversely, financial factors seem to have a lower impact at micro-level, but a higher one for the explanation of cross-country differentials.

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File URL: http://www.irdes.fr/EspaceAnglais/Publications/WorkingPapers/DT13SoonerBetterAnalysingPrefRetirEuropCountries.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by IRDES institut for research and information in health economics in its series Working Papers with number DT13.

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Length: 26 pages
Date of creation: Jul 2008
Date of revision: Jul 2008
Handle: RePEc:irh:wpaper:dt13

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Keywords: Retirement; Monetary factor; Health; Job satisfaction;

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References

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Citations

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Cited by:
  1. Hélène Blake & Clémentine Garrouste, 2012. "Collateral effects of a pension reform in France," PSE Working Papers halshs-00703706, HAL.
  2. Thomas Barnay & Karine Briard, 2010. "Health and Early Retirement: Evidence from French Data for individuals," Working Papers halshs-00809723, HAL.
  3. Thierry Debrand & Nicolas Sirven, 2009. "What are the Motivations of Pathways to Retirement in Europe: Individual, Familial, Professional Situation or Social Protection Systems?," Working Papers DT28, IRDES institut for research and information in health economics, revised Oct 2009.
  4. Mélika Ben Salem & Didier Blanchet & Antoine Bozio & Muriel Roger, 2008. "Labor force participation by the elderly and employment of the young: The case of France," Working Papers halshs-00586064, HAL.
  5. Rudolf Winter-Ebmer & Mario Schnalzenberger & Nicole Schneeweis & Martina Zweimüller, 2011. "Job Quality and Employment of Older People in Europe," NRN working papers 2011-05, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  6. Andrew E. Clark & Yarine Fawaz, 2009. "Valuing jobs via retirement: European evidence," Working Papers halshs-00566855, HAL.
  7. Thierry Debrand & Christine Sorasith, 2010. "Bouclier sanitaire : choisir entre égalité et équité ? Une analyse à partir du modèle ARAMMIS," Working Papers DT32, IRDES institut for research and information in health economics, revised Jun 2010.
  8. Blake, Hélène & Garrouste, Clémentine, 2012. "Collateral effects of a pension reform in France," Economics Papers from University Paris Dauphine 123456789/12129, Paris Dauphine University.
  9. Or, Zeynep & Cases, Chantal & Lisac, Melanie & Vrangbæk, Karsten & Winblad, Ulrika & Bevan, Gwyn, 2010. "Are health problems systemic? Politics of access and choice under Beveridge and Bismarck systems," Health Economics, Policy and Law, Cambridge University Press, vol. 5(03), pages 269-293, July.
  10. Hélène Blake & Clémentine Garrouste, 2012. "Collateral effects of a pension reform in France," Working Papers halshs-00703706, HAL.
  11. repec:tep:teppwp:wp1007 is not listed on IDEAS
  12. Helene Blake; & Clementine Garrouste, 2012. "Collateral effects of a pension reform in France," Health, Econometrics and Data Group (HEDG) Working Papers 12/16, HEDG, c/o Department of Economics, University of York.

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