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Labor force participation and transitions of older workers in Spain

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  • Alba, Alfonso

Abstract

We use data from the Active Population Survey (EP A) to study the labor force participation of older workers in Spain. More specifically, the focus is on labor force transitions of men aged 50-69. We match quarterly EPA files, available for the period 1987-1996, to obtain transitions over one-year intervals. In the parametric analysis of transitions rates we use a multinomial logit model. Similar to U.S. studies, we find a strong spike in labor force exit at age 65, the normal age of retirement. We also find a higher probability of exit from the labor force at the beginning of eligibility for early retirement, age 60 in Spain. In general, the paper's results agree with those obtained in previous studies. In addition, we provide evidence of the effect on transition rates of variables related labor force attachment and job characteristics. For instance, we find that lower job security is associated with a higher probability of leaving the labor force at older ages.

Suggested Citation

  • Alba, Alfonso, 1997. "Labor force participation and transitions of older workers in Spain," UC3M Working papers. Economics 6029, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:6029
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    Cited by:

    1. Almudena Blanco, "undated". "The decision or early retirement in Spain," Studies on the Spanish Economy 76, FEDEA.
    2. Namkee Ahn & Pedro Mira, "undated". "Labor Force Participation and Retirement of Spanish Older Men: Trends and Prospects," Working Papers 2000-25, FEDEA.
    3. Sergi Jiménez Martín & Judit Vall Castello, 2009. "Business Cycle Effects on Labour Force Transitions for Older People in Spain," Working Papers 2009-25, FEDEA.
    4. Karakaya, Güngör, 2008. "Early cessation of activity in the labour market: impact of supply and demand factors," MPRA Paper 13390, University Library of Munich, Germany.
    5. Sergi Jiménez-Martín & Alfonso R. Sánchez Martín, 2004. "The effect of pension rules on retirement monetary incentives with an application to pension reforms in Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 169(2), pages 35-66, June.

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    Labor force participation;

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