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Unemployment and the Retirement Decisions of Older Workers

Listed author(s):
  • Paul Marmora

    ()

  • Moritz Ritter

    ()

This paper examines how unemployment late in workers’ careers affects retirement timing. Using data from the Survey of Income and Program Participation from 1996 to 2011, we document that unemployed workers permanently leave the labor force at a significantly higher rate than employed workers. This effect is stronger once workers become eligible for Social Security benefits. The effect of unemployment on retirement early in an unemployment spell is weaker for workers eligible for UI benefits. Unemployed workers, particularly those workers in households with below median wealth, also have a significantly higher rate of early Social Security uptake shortly after turning 62 relative to employed workers. Copyright Springer Science+Business Media New York 2015

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File URL: http://hdl.handle.net/10.1007/s12122-015-9207-y
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Article provided by Springer in its journal Journal of Labor Research.

Volume (Year): 36 (2015)
Issue (Month): 3 (September)
Pages: 274-290

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Handle: RePEc:spr:jlabre:v:36:y:2015:i:3:p:274-290
DOI: 10.1007/s12122-015-9207-y
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/economics/journal/12122

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  1. Alan L. Gustman & Thomas L. Steinmeier, 2004. "Social security, pensions and retirement behaviour within the family," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 723-737.
  2. Kory Kroft & Fabian Lange & Matthew J. Notowidigdo & Lawrence F. Katz, 2016. "Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Nonparticipation," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 7-54.
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  19. repec:mpr:mprres:3680 is not listed on IDEAS
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