Employment duration and shifts into retirement in the EU
The decision to cease working is traditionally influenced by a wide set of socio-economic and environmental variables. In this paper, we study transitions out of work for 26 EU countries over the period 2004-2009 in order to investigate the determinants of retirement based on the Eurostat Survey on Income and Living Conditions (EU-SILC). Applying standard survivor analysis tools to describe exits into retirement, we do not find any significant differences in the patterns into retirement between the average euro area and EU non-euro area countries. Moreover, we find that shifts into retirement have increased during the onset of the 2009 economic and financial crisis. Income, together with flexible working arrangements, is found to be important as regards early retirement decisions, compared to retiring beyond the legal retirement age. Finally, we show that institutional measures (such as, state/health benefits, minimum retirement age) could not be sufficient alone if individuals withdraw earlier from the labour market due to a weakening of their health. Especially, these latter results are of importance for structural and macroeconomic policy, for instance, in increasing the employment of both people and hours worked against the background of population ageing. JEL Classification: J14, J26, C41
|Date of creation:||Feb 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jennifer Roberts & Nigel Rice & Andrew M. Jones, 2009.
"Early Retirement and Inequality in Britain and Germany: How Important Is Health?,"
SOEPpapers on Multidisciplinary Panel Data Research
188, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Roberts, J & Rice, N & Jones, A.M, 2008. "Early retirement and inequality in Britain and Germany: How important is health?," Health, Econometrics and Data Group (HEDG) Working Papers 08/27, HEDG, c/o Department of Economics, University of York.
- Jennifer Roberts & Nigel Rice & Andrew M. Jones, 2008. "Early retirement and inequality in Britain and Germany: How important is health?," Working Papers 2008012, The University of Sheffield, Department of Economics, revised Nov 2008.
- Boskin, Michael J. & Hurd, Michael D., 1978.
"The effect of social security on early retirement,"
Journal of Public Economics,
Elsevier, vol. 10(3), pages 361-377, December.
- Jonathan Gruber & David A. Wise, 2004.
"Social Security Programs and Retirement around the World: Micro-Estimation,"
National Bureau of Economic Research, Inc, number grub04-1.
- Jonathan Gruber & David A. Wise, 2002. "Social Security Programs and Retirement Around the World: Micro Estimation," NBER Working Papers 9407, National Bureau of Economic Research, Inc.
- Ronald Hagan & Andrew M. Jones & Nigel Rice, 2006. "Health and retirement in Europe," Health, Econometrics and Data Group (HEDG) Working Papers 06/10, HEDG, c/o Department of Economics, University of York.
- Costas Meghir & Whitehouse, E, 1995.
"Labour market transitions and retirement of men in the UK,"
IFS Working Papers
W95/10, Institute for Fiscal Studies.
- Meghir, Costas & Whitehouse, Edward, 1997. "Labour market transitions and retirement of men in the UK," Journal of Econometrics, Elsevier, vol. 79(2), pages 327-354, August.
- Costas Meghir & Edward Whitehouse, 1993. "Labour market transitions and retirement of men in the UK," IFS Working Papers W93/12, Institute for Fiscal Studies.
- Richard Disney & Carl Emmerson & Matthew Wakefield, 2003.
"Ill health and retirement in Britain: a panel data based analysis,"
IFS Working Papers
W03/02, Institute for Fiscal Studies.
- Disney, Richard & Emmerson, Carl & Wakefield, Matthew, 2006. "Ill health and retirement in Britain: A panel data-based analysis," Journal of Health Economics, Elsevier, vol. 25(4), pages 621-649, July.
- David Blake, 2004.
"The impact of wealth on consumption and retirement behaviour in the UK,"
Applied Financial Economics,
Taylor & Francis Journals, vol. 14(8), pages 555-576.
- David Blake, 2002. "The impact of wealth on consumption and retirement behaviour in the UK," LSE Research Online Documents on Economics 24949, London School of Economics and Political Science, LSE Library.
- Diamond, P. A. & Hausman, J. A., 1984. "Individual retirement and savings behavior," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 81-114.
- Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-79, June.
- Lindeboom, Maarten & van Doorslaer, Eddy, 2004.
"Cut-Point Shift and Index Shift in Self-Reported Health,"
IZA Discussion Papers
1286, Institute for the Study of Labor (IZA).
- Lindeboom, Maarten & van Doorslaer, Eddy, 2004. "Cut-point shift and index shift in self-reported health," Journal of Health Economics, Elsevier, vol. 23(6), pages 1083-1099, November.
- Michaud, P.C., 2003.
"Joint Labour Supply Dynamics of Older Couples,"
2003-69, Tilburg University, Center for Economic Research.
- Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
- Autor, David & Dorn, David, 2009.
"This Job Is 'Getting Old:' Measuring Changes in Job Opportunities Using Occupational Age Structure,"
IZA Discussion Papers
3970, Institute for the Study of Labor (IZA).
- David Autor & David Dorn, 2009. "This Job Is "Getting Old": Measuring Changes in Job Opportunities Using Occupational Age Structure," American Economic Review, American Economic Association, vol. 99(2), pages 45-51, May.
- David Autor & David Dorn, 2009. "This Job is 'Getting Old:' Measuring Changes in Job Opportunities Using Occupational Age Structure," NBER Working Papers 14652, National Bureau of Economic Research, Inc.
- C. Sofia Machado & Miguel Portela, 2011.
"Hours of work and retirement behavior,"
NIPE Working Papers
02/2011, NIPE - Universidade do Minho.
- Stephen Wu, 2003. "The Effects of Health Events on the Economic Status of Married Couples," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
- Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2010. "An Introduction to Survival Analysis Using Stata," Stata Press books, StataCorp LP, edition 3, number saus3, November.
- Hanoch, Giora & Honig, Marjorie, 1983. "Retirement, Wages, and Labor Supply of the Elderly," Journal of Labor Economics, University of Chicago Press, vol. 1(2), pages 131-51, April.
- James E. Duggan, 1984. "The labor-force participation of older workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 37(3), pages 416-430, April.
- Gary S. Fields & Olivia S. Mitchell, 1984.
"The Effects of Social Security Reforms on Retirement Ages and RetirementIncomes,"
NBER Working Papers
1348, National Bureau of Economic Research, Inc.
- Fields, Gary S. & Mitchell, Olivia S., 1984. "The effects of social security reforms on retirement ages and retirement incomes," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 143-159, November.
- Gloria J. Bazzoli, 1985. "The Early Retirement Decision: New Empirical Evidence on the Influence of Health," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 214-234.
- Hurd, Michael D, 1990. "Research on the Elderly: Economic Status, Retirement, and Consumption and Saving," Journal of Economic Literature, American Economic Association, vol. 28(2), pages 565-637, June.
- Kreider, Brent, 1999.
"Latent Work Disability and Reporting Bias,"
Staff General Research Papers
5185, Iowa State University, Department of Economics.
- Peter Hicks, 2011. "The surprisingly large policy implications of changing retirement durations," Social and Economic Dimensions of an Aging Population Research Papers 284, McMaster University.
- John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
- Jones, Andrew M. & Rice, Nigel & Roberts, Jennifer, 2010. "Sick of work or too sick to work? Evidence on self-reported health shocks and early retirement from the BHPS," Economic Modelling, Elsevier, vol. 27(4), pages 866-880, July.
- James Vaupel & Kenneth Manton & Eric Stallard, 1979. "The impact of heterogeneity in individual frailty on the dynamics of mortality," Demography, Springer, vol. 16(3), pages 439-454, August.
- Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-56, July.
When requesting a correction, please mention this item's handle: RePEc:ecb:ecbwps:20131517. See general 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: (Official Publications)
If references are entirely missing, you can add them using this form.