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Joining late, leaving early? Immigrant-native disparities in labor market exit

Author

Listed:
  • Åslund, Olof

    (Uppsala University, Department of Economics)

  • Larsson, Fredrik

    (Swedish Public Employment Agency)

  • Laun, Lisa

    (Uppsala Center for Labor Studies (UCLS))

Abstract

Theory and empirical findings on retirement determinants suggest that we may expect differences in labor market exit between native and foreign-born workers. Despite many countries seeing rising immigrant shares in their aging populations, alongside significant labor market disparities, the issue has so far received limited attention. Population-wide administrative data for Sweden show that the hazard rate to retirement is greater among immigrants already from age 50. But approaching age 65, especially marginal migrant groups have a stronger tendency to remain in the labor force and thus not adhering to the norm of retiring at a specific age. Education and family situation explain little of the retirement gaps, whereas labor market history, health, and occupational allocations are important determinants. Immigrant-native retirement differences are greater among men than among women. Overall findings suggest economic necessity and/or opportunity rather than varying preferences as drivers of differentials.

Suggested Citation

  • Åslund, Olof & Larsson, Fredrik & Laun, Lisa, 2023. "Joining late, leaving early? Immigrant-native disparities in labor market exit," Working Paper Series 2023:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2023_015
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    More about this item

    Keywords

    labor market exit; immigrants; retirement hazard;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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