The Impact of Wealth on Job Exit Rates of Elderly Workers
In the literature theoretical models have appeared that predict a positive impact of the level of individual wealth on the job exit probability. Empirically this prediction is most likely to be relevant for elderly workers who have been able to accumulate wealth throughout their working life and whose residual working life is relatively short. In the Netherlands, as in other European countries, there is a tendency of introducing more individual choice options in pension schemes. It is likely that the individual level of wealth will become an increasingly important factor in the retirement decision. Therefore it is interesting to know whether individuals with a different financial situation make different job exit decisions, given other factors. Empirical analysis of job exit behaviour of elderly workers so far has concentrated on properties of the pension system and the health situation. For a sample of elderly male workers in the Netherlands in the period 1995 through 2001, we analyse the impact of wealth, savings, and debt position on job exit rates. We find evidence for a positive effect of wealth on the probability to retire (early).
|Date of creation:||Aug 2006|
|Date of revision:|
|Publication status:||published as 'The effect of private wealth on the retirement rate: an empirical analysis' in: Economica, 2011, 78 (312), 637 - 655|
|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|
References listed on IDEAS
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.:
- Alessie, Rob & Lusardi, Annamaria & Kapteyn, Arie, 1999. "Saving after retirement: evidence from three different surveys," Labour Economics, Elsevier, vol. 6(2), pages 277-310, June.
- Bloemen, H.G., 1995.
"The relation between wealth and labour market transitions : An empirical study for the Netherlands,"
1995-99, Tilburg University, Center for Economic Research.
- Hans G. Bloemen, 2002. "The relation between wealth and labour market transitions: an empirical study for the Netherlands," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(3), pages 249-268.
- Bloemen, H., 1995. "The Relation Between Wealth and Labour Market Transitions: An Empirical Study for the Netherlands," Papers 9599, Tilburg - Center for Economic Research.
- Gustman, Alan L & Steinmeier, Thomas L, 2000. "Retirement in Dual-Career Families: A Structural Model," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 503-45, July.
- Bloemen, H.G. & Stancanelli, E.G.F., 1997.
"Individual Wealth, Reservation Wages and Transitions into Employment,"
1997-02, Tilburg University, Center for Economic Research.
- Bloemen, Hans G & Stancanelli, Elena G F, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 400-439, April.
- Hans Bloemen & Elena Stancanelli, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Post-Print hal-01017002, HAL.
- Hans Bloemen & Elena Stancanelli, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Sciences Po publications info:hdl:2441/9704, Sciences Po.
- repec:spo:wpecon:info:hdl:2441/9704 is not listed on IDEAS
- Richard Blundell & Thierry Magnac & Costas Meghir, 1996.
"Savings and labour market transitions,"
IFS Working Papers
W96/05, Institute for Fiscal Studies.
- Stancanelli, E.G.F., 1997.
"Do the rich stay unemployed longer? An empirical study for the U.K,"
97.81, Tilburg University, Center for Economic Research.
- Stancanelli, Elena G F, 1999. " Do the Rich Stay Unemployed Longer? An Empirical Study for the UK," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 295-314, August.
- Kapteyn, Arie & de Vos, Klaas, 1998. "Social Security and Labor-Force Participation in the Netherlands," American Economic Review, American Economic Association, vol. 88(2), pages 164-67, May.
- Venti, Steven F. & Wise, David A., 1991.
"Aging and the income value of housing wealth,"
Journal of Public Economics,
Elsevier, vol. 44(3), pages 371-397, April.
- Hamermesh, Daniel S, 1984.
"Consumption during Retirement: The Missing Link in the Life Cycle,"
The Review of Economics and Statistics,
MIT Press, vol. 66(1), pages 1-7, February.
- Daniel S. Hamermesh, 1982. "Consumption During Retirement: The Missing Link in the Life Cycle," NBER Working Papers 0930, National Bureau of Economic Research, Inc.
- Maarten Lindeboom, 1998. "Microeconometric Analysis of the Retirement Decision: The Netherlands," OECD Economics Department Working Papers 207, OECD Publishing.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp2247. 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.