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Work or Retirement? Exit Routes for Norwegian Elderly

  • Dahl, Svenn-Åge

    ()

    (SNF, Bergen)

  • Nilsen, Øivind Anti

    ()

    (Norwegian School of Economics)

  • Vaage, Kjell

    ()

    (University of Bergen)

In this paper we analyze early retirement pathways for Norwegian male and female workers. We apply a multinomial logit model to a data set covering more than 10 500 employees, ages 56-61, in 1989. The aim is to analyze the transition to different destinations, i.e. disability pension, unemployment benefits, out of the labour force, in the period from 1989 till 1995. Both family characteristics, expected income in different end-states, and push factors, such as industry attachment and local unemployment, are important for the early retirement process. Our findings also indicate that there are several gender differences. The explanatory variables have different effects on the different exit routes for males as well as for females. We therefore reject the hypothesis that disability and unemployment are exchangeable pathways into early retirement.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 32.

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Length: 26 pages
Date of creation: Feb 1999
Date of revision:
Publication status: published in: Applied Economics, 2000, 32(14), 1865-1876
Handle: RePEc:iza:izadps:dp32
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  1. Michael J. Boskin & Michael D. Hurd, 1977. "The Effect of Social Security on Early Retirement," NBER Working Papers 0204, National Bureau of Economic Research, Inc.
  2. Haveman, Robert & Wolfe, Barbara & Warlick, Jennifer, 1988. "Labor market behavior of older men : Estimates from a Trichotomous choice model," Journal of Public Economics, Elsevier, vol. 36(2), pages 153-175, July.
  3. 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.
  4. Ruhm, Christopher J, 1990. "Bridge Jobs and Partial Retirement," Journal of Labor Economics, University of Chicago Press, vol. 8(4), pages 482-501, October.
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