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Labor Force Transitions at Older Ages: The Roles of Work Environment and Personality

Author

Listed:
  • Marco Angrisani

    (University of Southern California and RAND Corporation)

  • Michael D. Hurd

    (RAND Corporation)

  • Erik Meijer

    (University of Southern California and RAND Corporation)

  • Andrew M. Parker

    (RAND Corporation)

  • Susann Rohwedder

    (RAND Corporation)

Abstract

Besides compensation and financial incentives, several other work-related factors may affect individual retirement decisions. Specifically, job characteristics such as autonomy, skill variety, task significance and difficulty, stress and physical demands, peer pressure and relations with co-workers, play a crucial role in determining psychological commitment to work at older ages. While financial preparedness for retirement and health shocks are often cited as main predictors of the choice to exit the labor force, there exists relatively little research documenting the extent to which the work environment itself and its interaction with economic variables influence retirement decisions. We document that job characteristics are associated with labor force transitions at older ages, in particular transitions to retirement and part-time employment. Additionally, we show that while personality traits do not directly drive labor force transitions, the effect of job characteristics on labor supply outcomes varies with the “intensity” of personality traits. We also document that job characteristics themselves are strongly related to personality traits. This suggests that, depending on their personality, individuals may select into specific jobs, whose characteristics ultimately shape their retirement paths.

Suggested Citation

  • Marco Angrisani & Michael D. Hurd & Erik Meijer & Andrew M. Parker & Susann Rohwedder, 2013. "Labor Force Transitions at Older Ages: The Roles of Work Environment and Personality," Working Papers wp295, University of Michigan, Michigan Retirement Research Center.
    • Handle: RePEc:mrr:papers:wp295
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    References listed on IDEAS

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    Cited by:

    1. Marco Angrisani & Arie Kapteyn & Erik Meijer, 2015. "Nonmonetary Job Characteristics and Employment Transitions at Older Ages," Working Papers wp326, University of Michigan, Michigan Retirement Research Center.
    2. Grevenbrock, Nils & Groneck, Max & Ludwig, Alexander & Zimper, Alexander, 2015. "Biased Survival Beliefs, Psychological and Cognitive Explanations, and the Demand for Life Insurances," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113203, Verein für Socialpolitik / German Economic Association.
    3. Italo Lopez Garcia & Kathleen J. Mullen par, 2021. "The Role of Physical Job Demands and the Physical Work Environment in Retirement Outcomes," Working Papers wp437, University of Michigan, Michigan Retirement Research Center.
    4. Marco Angrisani & Michael D. Hurd & Erik Meijer & Andrew M. Parker & Susann Rohwedder, 2017. "Personality and Employment Transitions at Older Ages: Direct and Indirect Effects through Non-Monetary Job Characteristics," LABOUR, CEIS, vol. 31(2), pages 127-152, June.
    5. Brooke Helppie McFall & Amanda Sonnega & Robert J. Willis & Peter Hudomiet, 2015. "Occupations and Work Characteristics: Effects on Retirement Expectations and Timing," Working Papers wp331, University of Michigan, Michigan Retirement Research Center.
    6. Sefane Cetin, 2021. "Joint Retirement: Evidence on the Heterogeneity of Spousal Effects," LIDAM Discussion Papers IRES 2021031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    7. Ramnath, Shanthi & Shoven, John B. & Slavov, Sita Nataraj, 2021. "Pathways to retirement through self-employment," Journal of Pension Economics and Finance, Cambridge University Press, vol. 20(2), pages 232-251, April.

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