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Health, Work Capacity and Retirement in Sweden

Author

Listed:
  • Johansson, Per

    (Uppsala University)

  • Laun, Lisa

    (Institute for Evaluation of Labor Market and Education Policy (IFAU))

  • Palme, Marten

    (Dept. of Economics, Stockholm University)

Abstract

Following an era of a development towards earlier retirement, there has been a reversed trend to later exit from the labor market in Sweden since the late 1990s. We investigate whether or not there are potentials, with respect to health and work capacity of the population, for extending this trend further. We use two different methods. First, the Milligan and Wise (2012) method, which calculates how much people would participate in the labor force at a constant mortality rate. Second, the Cutler et al. (2012) method, which asks how much people would participate in the labor force if they would work as much as the age group 50-54 at a particular level of health. We also provide evidence on the development of self-assessed health and health inequality in the Swedish population.

Suggested Citation

  • Johansson, Per & Laun, Lisa & Palme, Marten, 2015. "Health, Work Capacity and Retirement in Sweden," Research Papers in Economics 2015:8, Stockholm University, Department of Economics.
    • Handle: RePEc:hhs:sunrpe:2015_0008
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    Cited by:

    1. Lisa Laun & Mårten Palme, 2018. "The Recent Rise of Labor Force Participation of Older Workers in Sweden," NBER Chapters, in: Social Security Programs and Retirement around the World: Working Longer, pages 231-265, National Bureau of Economic Research, Inc.
    2. Enström Öst, Cecilia & Johansson, Per, 2023. "The consequences of the Swedish rent control system on labor income: Evidence from a randomized apartment lottery," Journal of Public Economics, Elsevier, vol. 221(C).
    3. Hou, Bo & Wang, Gewei & Wang, Yafeng & Zhao, Yaohui, 2021. "The health capacity to work at older ages in urban China," China Economic Review, Elsevier, vol. 66(C).
    4. Laun, Lisa, 2017. "The effect of age-targeted tax credits on labor force participation of older workers," Journal of Public Economics, Elsevier, vol. 152(C), pages 102-118.
    5. Mårten Palme & Lisa Laun, 2018. "Social Security Reforms and the Changing Retirement Behavior in Sweden," NBER Chapters, in: Social Security Programs and Retirement around the World: Reforms and Retirement Incentives, pages 373-395, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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