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Late careers and career exits in Norway

  • 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)

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.

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File URL: http://www.uib.no/filearchive/No.%2014-05.pdf
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Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 14/05.

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Length: 31 pages
Date of creation: 05 Jun 2005
Date of revision:
Handle: RePEc:hhs:bergec:2005_014
Contact details of provider: Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
Web page: http://www.uib.no/econ/en
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  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.
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