New Developments in the Economic Analysis of Retirement
AbstractThe world's population is living longer but retiring earlier, and vast numbers of adults now spend as much as a third of their lifetimes relying on public and private retirement benefits. Consequently, labor economists are deeply interested in the forces driving retirement behavior, seeking to understand why people leave their jobs at young ages, how employers respond to an aging workforce, how government programs often induce job-leaving, and the economic consequences of retirement for individuals and society. This chapter examines new developments in retirement economics, focusing first on retirement trends and retiree wellbeing. We next turn to theoretical developments in the retirement literature where new models have enriched our understanding of the role of worker heterogeneity and uncertainty about health and productivity shocks. Lastly, we review some of the lessons that may drawn from the empirical analysis of retirement patterns undertaken over the last decade, showing how natural experiments and exciting new longitudinal datasets afford new opportunities to learn about the demand for and supply of older workers. We conclude that future researchers would do well to explore how retirement decisions are made in a household context, and to integrate saving as well as consumption in the labor supply decision. In addition we argue that much remains to be learned about how workers form expectations regarding their future retirement wellbeing, and about how they adapt when expectations need to be adjusted due to changes in economic, health, family, and other circumstances.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Wharton School Pension Research Council, University of Pennsylvania in its series Pension Research Council Working Papers with number 98-8.
Date of creation:
Date of revision:
Publication status: Published in Handbook of Labor Economics. Orley Ashenfelter and David Card, eds. Amsterdam: North Holland, 1999: 3261-3308.
Contact details of provider:
Postal: The Wharton School, 3641 Locust Walk, 304 CPC, Philadelphia, PA 19104-6218
Web page: http://www.pensionresearchcouncil.org/
More information through EDIRC
Other versions of this item:
- Lumsdaine, Robin L. & Mitchell, Olivia S., 1999. "New developments in the economic analysis of retirement," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 49, pages 3261-3307 Elsevier.
- J0 - Labor and Demographic Economics - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilary Farrell).
If references are entirely missing, you can add them using this form.