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Work or Retirement? Exit Routes for Norwegian Elderly

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  • Dahl, Svenn-Åge

    ()
    (SNF, Bergen)

  • Nilsen, Øivind Anti

    ()
    (Norwegian School of Economics)

  • Vaage, Kjell

    ()
    (University of Bergen)

Abstract

In this paper we analyze early retirement pathways for Norwegian male and female workers. We apply a multinomial logit model to a data set covering more than 10 500 employees, ages 56-61, in 1989. The aim is to analyze the transition to different destinations, i.e. disability pension, unemployment benefits, out of the labour force, in the period from 1989 till 1995. Both family characteristics, expected income in different end-states, and push factors, such as industry attachment and local unemployment, are important for the early retirement process. Our findings also indicate that there are several gender differences. The explanatory variables have different effects on the different exit routes for males as well as for females. We therefore reject the hypothesis that disability and unemployment are exchangeable pathways into early retirement.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 32.

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Length: 26 pages
Date of creation: Feb 1999
Date of revision:
Publication status: published in: Applied Economics, 2000, 32(14), 1865-1876
Handle: RePEc:iza:izadps:dp32

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Keywords: labour force participation; early retirement;

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References

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  1. Michael J. Boskin & Michael D. Hurd, 1977. "The Effect of Social Security on Early Retirement," NBER Working Papers 0204, National Bureau of Economic Research, Inc.
  2. Ruhm, Christopher J, 1990. "Bridge Jobs and Partial Retirement," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 8(4), pages 482-501, October.
  3. Haveman, Robert & Wolfe, Barbara & Warlick, Jennifer, 1988. "Labor market behavior of older men : Estimates from a Trichotomous choice model," Journal of Public Economics, Elsevier, Elsevier, vol. 36(2), pages 153-175, July.
  4. Regina Riphahn, 1997. "Disability retirement and unemployment - substitute pathways for labour force exit? An empirical test for the case of Germany," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 29(5), pages 551-561.
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Cited by:
  1. Rafael LALIVE, 2006. "How do Extended Benefits affect Unemployment Duration? A Regression Discontinuity Approach," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP), Université de Lausanne, Faculté des HEC, DEEP 06.06, Université de Lausanne, Faculté des HEC, DEEP.
  2. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2010. "When Minority Labor Migrants Meet the Welfare State," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 28(3), pages 633-676, 07.
  3. Dahl, Svenn-Åge & Nilsen, Øivind Anti & Vaage, Kjell, 2002. "Gender Differences in Early Retirement Behaviour," Working Papers in Economics, University of Bergen, Department of Economics 02/02, University of Bergen, Department of Economics.
  4. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2010. "Disability in the Welfare State: An Unemployment Problem in Disguise?," IZA Discussion Papers 4897, Institute for the Study of Labor (IZA).
  5. Vincent, VANDENBERGHE, 2005. "The Low Employment Rate Conundrum. Can More Human Capital Help ?," Discussion Papers (ECON - Département des Sciences Economiques), Université catholique de Louvain, Département des Sciences Economiques 2005053, Université catholique de Louvain, Département des Sciences Economiques.
  6. Huovinen, Pasi & Piekkola, Hannu, 2002. "Early Retirement and Use of Time by Older Finns," Discussion Papers, The Research Institute of the Finnish Economy 787, The Research Institute of the Finnish Economy.
  7. Thomas Barnay, 2010. "In which ways do unhealthy people older than 50 exit the labour market in France?," The European Journal of Health Economics, Springer, Springer, vol. 11(2), pages 127-140, April.
  8. Larsen, Mona & Pedersen, Peder J., 2005. "Pathways to Early Retirement in Denmark, 1984-2000," IZA Discussion Papers 1575, Institute for the Study of Labor (IZA).
  9. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, Elsevier, vol. 24(C), pages 137-150.
  10. Huttunen, Kristiina & Moen, Jarle & Salvanes, Kjell G., 2006. "How Destructive Is Creative Destruction? The Costs of Worker Displacement," IZA Discussion Papers 2316, Institute for the Study of Labor (IZA).
  11. Tuulia Hakola, 2000. "Navigating through the Finnish Pension System," Discussion Papers, Government Institute for Economic Research Finland (VATT) 224, Government Institute for Economic Research Finland (VATT).

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