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Employer Willingness to Permit Phased Retirement: Why are Some More Willing Than others?

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  • Robert Hutchens
  • Karen Grace-Martin

Abstract

Under phased retirement, an older worker remains with his or her employer while gradually reducing work hours and effort. Although older workers often express an interest in phased retirement, actual occurrences are evidently rare. A possible explanation is that employers limit opportunities for phased retirement. Using a survey of employers conducted in 2001–2002, the authors examine how and why establishments differed in their willingness to permit an older full-time white-collar worker to take phased retirement. The survey indicates that employers were often willing to permit the option, but primarily as an informal arrangement. The results also indicate that opportunities for phased retirement were greater in establishments that employed part-time white-collar workers, allowed job sharing, and had flexible starting times. Opportunities tended to be more limited in establishments where white-collar workers were unionized.

Suggested Citation

  • Robert Hutchens & Karen Grace-Martin, 2006. "Employer Willingness to Permit Phased Retirement: Why are Some More Willing Than others?," ILR Review, Cornell University, ILR School, vol. 59(4), pages 525-546, July.
  • Handle: RePEc:sae:ilrrev:v:59:y:2006:i:4:p:525-546
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    Cited by:

    1. Hutchens, R & Nolen, PJ, 2006. "Will The Real Family-Friendly Employer Please Stand Up: Who Permits Parents To Reduce Working Hours For Purposes of Childcare?," Economics Discussion Papers 2905, University of Essex, Department of Economics.
    2. Hutchens, Robert M., 2007. "Worker Characteristics, Job Characteristics, and Opportunities for Phased Retirement," IZA Discussion Papers 2564, Institute for the Study of Labor (IZA).
    3. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The Effect of Firms' Partial Retirement Policies on the Labour Market Outcomes of Their Employees," IZA Discussion Papers 7513, Institute for the Study of Labor (IZA).
    4. David Blau & Tetyana Shvydko, 2011. "Labor Market Rigidities and the Employment Behavior of Older Workers," ILR Review, Cornell University, ILR School, vol. 64(3), pages 464-484, April.
    5. Andrea Albanese & Bart Cockx & Yannick Thuy, 2015. "Working Time Reductions at the End of the Career. Do they prolong the Time Spent in Employment?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2015024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    6. Jaap Oude Mulders & Hendrik Dalen & Kène Henkens & Joop Schippers, 2014. "How Likely are Employers to Rehire Older Workers After Mandatory Retirement? A Vignette Study Among Managers," De Economist, Springer, vol. 162(4), pages 415-431, December.
    7. Daniel S. Hamermesh & Stephen Donald, 2007. "The Time and Timing Costs of Market Work," NBER Working Papers 13127, National Bureau of Economic Research, Inc.
    8. Hutchens, Robert, 2010. "Worker characteristics, job characteristics, and opportunities for phased retirement," Labour Economics, Elsevier, vol. 17(6), pages 1010-1021, December.

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