Pathways to Early Retirement in Denmark, 1984-2000
This paper describes and analyses the pathways to early retirement in Denmark. The analyses are based on a 10 per cent panel sample of the population 45-66 years old followed from 1984 onwards. We use a multinomial logit approach to analyse the characteristics of individuals that retire through each pathway compared to those remaining in the labour force. The transition from work to retirement is complex and far from the conventional idea of exit typically occurring from a job at the official pension age. Eight pathways from work to an early retirement program are identified. One group of pathways is transitions directly from employment corresponding to 75 per cent of all transitions in the sample period. The great majority of these transitions occur to an early retirement program. A second group consists of pathways dominated by unemployment insurance benefits (UIB) covering 20 per cent. The remaining 5 per cent of the transitions occur through pathways dominated by benefit programs reflecting a low attachment to the labour force in the period prior to retirement. Overall, availability and/or generosity of retirement programs are important for early retirement through the employment and UIB dominated pathways. For early retirement through other pathways, however, personal characteristics seem to be at least as important as retirement programs.
|Date of creation:||Apr 2005|
|Date of revision:|
|Publication status:||published in: International Journal of Manpower, 2008, 29(5), 384-409|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Dahl, S.-A., Nilsen, O.A. & Vaage, K., 2000.
"Work or Retirement? Exit Routes for Norwegian Elderly,"
Norway; Department of Economics, University of Bergen
213, Department of Economics, University of Bergen.
- Svenn-Age Dahl & Oivind Anti Nilsen & Kjell Vaage, 2000. "Work or retirement? Exit routes for Norwegian elderly," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1865-1876.
- Dahl, Svenn-Åge & Nilsen, Øivind Anti & Vaage, Kjell, 1999. "Work or Retirement? Exit Routes for Norwegian Elderly," IZA Discussion Papers 32, Institute for the Study of Labor (IZA).
- Regina Riphahn, 1997. "Disability retirement and unemployment - substitute pathways for labour force exit? An empirical test for the case of Germany," Applied Economics, Taylor & Francis Journals, vol. 29(5), pages 551-561.
- Palme, Mårten & Svensson, Ingemar, 2001.
"Income Security Programs and Retirement in Sweden,"
SSE/EFI Working Paper Series in Economics and Finance
422, Stockholm School of Economics.
- Dahl, Svenn-Åge & Nilsen, Øivind Anti & Vaage, Kjell, 2002.
"Gender Differences in Early Retirement Behaviour,"
IZA Discussion Papers
522, Institute for the Study of Labor (IZA).
- Hernaes,E., 1999.
"Early retirement and economic incentives,"
17/1999, Oslo University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1575. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.