IDEAS home Printed from https://ideas.repec.org/p/hhs/bergec/2005_014.html
   My bibliography  Save this paper

Late careers and career exits in Norway

Author

Listed:
  • Aakvik, Arild

    (University of Bergen, Department of Economics)

  • Dahl, Svenn-Åge

    (Institute for Research in Economics and Business Administration (SNF))

  • Vaage, Kjell

    (University of Bergen, Department of Economics)

Abstract

We used matched employer-employee data for the period 1992-1997 to analyse the transition from work to early retirement in Norway. We focus on the effect of a new early retirement scheme ("AFP") of which some 60 percent of the population is eligible. We thus observe individuals in two different incentive systems and estimate the reallocation effect between employment and different early retirement, notably AFP and disability pension. There is a substantial drop in employment for the group entitled to AFP. However, while AFP has an increasingly negative effect on the labour supply, there seem to be almost no corresponding reduction in the incidence of disability pension during the period of investigation. Our data includes a broad range of individual, workplace and industry characteristics. We report a relatively high degree of heterogeneity in the retirement behaviour, notably between genders, but also between industries and sectors. Push as well as pull factors are identified. The former appears to be more relevant for the disability pathway, while the latter turns out to be significant when retiring to AFP.

Suggested Citation

  • Aakvik, Arild & Dahl, Svenn-Åge & Vaage, Kjell, 2005. "Late careers and career exits in Norway," Working Papers in Economics 14/05, University of Bergen, Department of Economics.
    • Handle: RePEc:hhs:bergec:2005_014
    as

    Download full text from publisher

    File URL: http://ekstern.filer.uib.no/svf/2005/No.%2014-05.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Victoria Buesch & Svenn-Age Dahl & Dennis A.V. Dittrich, 2004. "Age Discrimination in Hiring Decisions - A Comparison of Germany and Norway," Papers on Strategic Interaction 2004-14, Max Planck Institute of Economics, Strategic Interaction Group.
    2. van Dalen, Hendrik P., 1996. "Pitfalls in the economic analysis of aging," Journal of Policy Modeling, Elsevier, vol. 18(2), pages 157-184, April.
    3. Knut Røed & Fredrik Haugen, 2003. "Early Retirement and Economic Incentives: Evidence from a Quasi‐natural Experiment," LABOUR, CEIS, vol. 17(2), pages 203-228, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hernaes, Erik & Markussen, Simen & Piggott, John & Vestad, Ola L., 2013. "Does retirement age impact mortality?," Journal of Health Economics, Elsevier, vol. 32(3), pages 586-598.
    2. Bruder, Jana & Frosch, Katharina, 2006. "Foreign nationality and age: A double drawback for reemployment in Germany?," Thuenen-Series of Applied Economic Theory 63, University of Rostock, Institute of Economics.
    3. John Heywood & Uwe Jirjahn & Georgi Tsertsvardze, 2010. "Hiring older workers and employing older workers: German evidence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(2), pages 595-615, March.
    4. Rob Euwals & Elisabetta Trevisan, 2011. "Early Retirement and Financial Incentives: Differences Between High and Low Wage Earners," CPB Discussion Paper 195, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Justina A.V. Fischer & Alfonso Sousa-Poza, 2006. "The Institutional Determinants of Early Retirement in Europe," University of St. Gallen Department of Economics working paper series 2006 2006-08, Department of Economics, University of St. Gallen.
    6. Iskhakov, Fedor, 2008. "Pension Reforms in Norway: Evidence from a Structural Dynamic Model," Memorandum 14/2008, Oslo University, Department of Economics.
    7. Maja Weemes Grøtting & Otto Sevaldson Lillebø, 2020. "Health effects of retirement: evidence from survey and register data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(2), pages 671-704, April.
    8. Pål Schøne, 2009. "New technologies, new work practices and the age structure of the workers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(3), pages 803-826, July.
    9. Holen, Dag S., 2007. "It Ain't Necessariy So," Memorandum 19/2008, Oslo University, Department of Economics.
    10. Dennis Fredriksen & Nils Martin Stølen, 2011. "Norwegian pension reform Defined benefit versus defined contribution," Discussion Papers 669, Statistics Norway, Research Department.
    11. Nordberg, Morten, 2007. "The Total Tax on Labour Income," Memorandum 05/2007, Oslo University, Department of Economics.
    12. Weemes Grøtting, Maja & Lillebø, Otto, 2017. "Health Effects of Retirement: Evidence from Survey and Register Data," Working Papers in Economics 10/18, University of Bergen, Department of Economics, revised 19 Nov 2018.
    13. Iskhakov, Fedor, 2008. "Dynamic Programming Model of Health and Retirement," Memorandum 03/2008, Oslo University, Department of Economics.
    14. Rob Euwals & Elisabetta Trevisan, 2011. "Early Retirement and Financial Incentives: Differences Between High and Low Wage Earners," CPB Discussion Paper 195.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Hinrichs, Karl, 2004. "Active Citizens and Retirement Planning: Enlarging Freedom of Choice in the Course of Pension Reforms in Nordic Countries and Germany," Working papers of the ZeS 11/2004, University of Bremen, Centre for Social Policy Research (ZeS).
    16. Grøtting, Maja Weemes & Lillebø, Otto Sevaldson, 2017. "Health effects of retirement. Evidence from Norwegian survey and register data," Working Papers in Economics 02/17, University of Bergen, Department of Economics, revised 19 Nov 2018.
    17. Daniel Hallberg & Matias Eklöf, 2010. "Do buy‐outs of older workers matter?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(3), pages 337-359, June.
    18. Vestad, Ola Lotherington, 2013. "Labour supply effects of early retirement provision," Labour Economics, Elsevier, vol. 25(C), pages 98-109.
    19. Johnsen, Julian V. & Vaage, Kjell, 2015. "Spouses’ retirement and the take-up of disability pension," Working Papers in Economics 03/15, University of Bergen, Department of Economics.
    20. Christine Mayrhuber & Silvia Rocha-Akis, 2013. "Anreizsysteme zur Weiterbeschäftigung älterer Arbeitnehmerinnen und Arbeitnehmer," WIFO Studies, WIFO, number 46905, April.

    More about this item

    Keywords

    early retirement; social security;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:bergec:2005_014. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kjell Erik Lommerud (email available below). General contact details of provider: https://edirc.repec.org/data/iouibno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.