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Labour force activity after 65: what explain recent trends in Denmark, Germany and Sweden?

Author

Listed:
  • Larsen, Mona

    (SFI – Danish National Centre for Social Research, Copenhagen)

  • Pedersen, Peder J.

    (IZA, Bonn ; SFI – Danish National Centre for Social Research, Aarhus University)

Abstract

"In most OECD member countries labour force attachment, has increased in recent years not only in the age groups 60 - 64 years but also among people 65 years and older. Focus in this paper is on the trend in older workers' labour force participation in Denmark, Germany and Sweden since 2004. Main emphasis is given to people aged 65 - 69 years eligible for social security retirement programs from age 65. The gender aspect is included to accommodate different trends for women and men. To explain country differences in trends, the importance of changes in retirement policies of relevance for this age group and cohort relevant changes in education and health is examined and discussed. Further, country differences in the impact from education and health is examined. Results show that the largest increase in labour force participation among people aged 65 - 69 years has taken place in Sweden following by Germany, while the increase in Denmark is rather small. While the increase in Germany mainly seems to be a result of policy reforms, the increase in Sweden appear to be a result of a combination of policy changes and an increasing educational level. Financial incentives seem most important in Germany and only of minor importance in Denmark, where policy changes directed towards individuals above the age of 65 appear to have been too small so far to affect retirement behaviour significantly." (Author's abstract, © Springer-Verlag) ((en))

Suggested Citation

  • Larsen, Mona & Pedersen, Peder J., 2017. "Labour force activity after 65: what explain recent trends in Denmark, Germany and Sweden?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 50(1), pages 15-27.
    • Handle: RePEc:iab:iabjlr:v:50:i:1:p:015-027
    DOI: 10.1007/s12651-017-0223-7
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    Cited by:

    1. Anu Polvinen & Aart-Jan Riekhoff & Satu Nivalainen & Susan Kuivalainen, 2022. "Educational inequalities in employment of Finns aged 60–68 in 2006–2018," PLOS ONE, Public Library of Science, vol. 17(10), pages 1-18, October.
    2. Juan Carlos Caro & Marcela Parada‐Contzen, 2022. "Pension Incentives and Retirement Planning in Rural China: Evidence for the New Rural Pension Scheme," The Developing Economies, Institute of Developing Economies, vol. 60(1), pages 3-29, March.
    3. Pfister, Mona & Lorenz, Svenja & Zwick, Thomas, 2018. "Calculation of pension entitlements in the sample of integrated labour market biographies (SIAB)," FDZ Methodenreport 201801_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Lorenz, Svenja & Zwick, Thomas, 2020. "Money also is sunny in a retiree's world," ZEW Discussion Papers 20-056, ZEW - Leibniz Centre for European Economic Research.
    5. Michaël Boissonneault & Jaap Oude Mulders & Konrad Turek & Yves Carriere, 2020. "A systematic review of causes of recent increases in ages of labor market exit in OECD countries," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-15, April.
    6. Anna Amilon & Mona Larsen, 2023. "Increasing retirement ages in Denmark: Do changes in gender, education, employment status and health matter?," European Journal of Ageing, Springer, vol. 20(1), pages 1-10, December.
    7. repec:iab:iabfme:201801(en is not listed on IDEAS
    8. Christiansen, Charlotte & Jansson, Thomas & Kallestrup-Lamb, Malene & Noren, Vicke, 2023. "Households' investments in socially responsible mutual funds," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 46-67.
    9. Poulomi Chowdhury & Itismita Mohanty & Akansha Singh & Theo Niyonsenga, 2023. "Informal sector employment and the health outcomes of older workers in India," PLOS ONE, Public Library of Science, vol. 18(2), pages 1-27, February.
    10. Christian Dudel & Elke Loichinger & Sebastian Klüsener & Harun Sulak & Mikko Myrskylä, 2021. "The extension of late working life in Germany: trends, inequalities, and the East-West divide," MPIDR Working Papers WP-2021-018, Max Planck Institute for Demographic Research, Rostock, Germany.
    11. Ashley McAllister & Theo Bodin & Henrik Brønnum-Hansen & Lisa Harber-Aschan & Ben Barr & Lee Bentley & Qing Liao & Natasja Koitzsch Jensen & Ingelise Andersen & Wen-Hao Chen & Karsten Thielen & Camero, 2020. "Inequalities in extending working lives beyond age 60 in Canada, Denmark, Sweden and England—By gender, level of education and health," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-12, August.
    12. Paul Bingley & Nabanita Datta Gupta & Malene Kallestrup-Lamb & Peder J. Pedersen, 2019. "Labor Force Exit in Denmark, 1980–2016: Impact from Changes in Incentives," NBER Chapters, in: Social Security Programs and Retirement around the World: Reforms and Retirement Incentives, pages 109-131, National Bureau of Economic Research, Inc.

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    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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