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Work or Retirement? Exit Routes for Norwegian Elderly

Author

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  • Dahl, Svenn-Åge

    (SNF, Bergen)

  • Nilsen, Øivind Anti

    (Norwegian School of Economics)

  • Vaage, Kjell

    (University of Bergen)

Abstract

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.

Suggested Citation

  • Dahl, Svenn-Åge & Nilsen, Øivind Anti & Vaage, Kjell, 1999. "Work or Retirement? Exit Routes for Norwegian Elderly," IZA Discussion Papers 32, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp32
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    References listed on IDEAS

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    1. Boskin, Michael J. & Hurd, Michael D., 1978. "The effect of social security on early retirement," Journal of Public Economics, Elsevier, vol. 10(3), pages 361-377, December.
    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. Ruhm, Christopher J, 1990. "Bridge Jobs and Partial Retirement," Journal of Labor Economics, University of Chicago Press, vol. 8(4), pages 482-501, October.
    4. 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.
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    Cited by:

    1. Thomas Barnay, 2010. "In which ways do unhealthy people older than 50 exit the labour market in France?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(2), pages 127-140, April.
    2. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2010. "When Minority Labor Migrants Meet the Welfare State," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 633-676, July.
    3. Schreiber Philipp, 2018. "Widowhood and Retirement Timing: Evidence from the Health and Retirement Study," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-21, July.
    4. Thomas Barnay & François Jeger, 2006. "Quels dispositifs de cessation d’activité pour les personnes en mauvaise santé ?," Post-Print hal-01298924, HAL.
    5. Miaari, Sami H. & Khattab, Nabil & Sabbah-Karkabi, Maha, 2020. "Obstacles to Labour Market Participation among Arab Women in Israel," IZA Discussion Papers 13572, Institute of Labor Economics (IZA).
    6. Lalive, Rafael, 2008. "How do extended benefits affect unemployment duration A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 785-806, February.
    7. Mona Larsen & Peder J. Pedersen, 2008. "Pathways to early retirement in Denmark, 1984‐2000," International Journal of Manpower, Emerald Group Publishing Limited, vol. 29(5), pages 384-409, August.
    8. Huttunen, Kristiina & Moen, Jarle & Salvanes, Kjell G., 2006. "How Destructive Is Creative Destruction? The Costs of Worker Displacement," IZA Discussion Papers 2316, Institute of Labor Economics (IZA).
    9. Dahl, Svenn-Åge & Nilsen, Øivind Anti & Vaage, Kjell, 2002. "Gender Differences in Early Retirement Behaviour," Working Papers in Economics 02/02, University of Bergen, Department of Economics.
    10. Thomas Barnay, 2008. "Chômage et invalidité après 50 ans : deux dispositifs alternatifs de sortie de l'emploi pour les seniors en mauvaise santé ?," Économie et Statistique, Programme National Persée, vol. 411(1), pages 47-63.
    11. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2010. "Disability in the Welfare State: An Unemployment Problem in Disguise?," IZA Discussion Papers 4897, Institute of Labor Economics (IZA).
    12. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2013. "Job loss and disability insurance," Labour Economics, Elsevier, vol. 24(C), pages 137-150.
    13. Vincent, VANDENBERGHE, 2005. "The Low Employment Rate Conundrum. Can More Human Capital Help ?," Discussion Papers (ECON - Département des Sciences Economiques) 2005053, Université catholique de Louvain, Département des Sciences Economiques.
    14. Huovinen, Pasi & Piekkola, Hannu, 2002. "Early Retirement and Use of Time by Older Finns," Discussion Papers 787, The Research Institute of the Finnish Economy.
    15. Berangere Legendre & Annaig-C. Pedrant & Mareva Sabatier, 2018. "Should I stay or should I go? An econometric analysis of retirement decisions by couples," Applied Economics, Taylor & Francis Journals, vol. 50(53), pages 5814-5829, November.
    16. M. Solaiman Miah & Virginia Wilcox-Gok, 2007. "Do the sick retire early? Chronic illness, asset accumulation and early retirement," Applied Economics, Taylor & Francis Journals, vol. 39(15), pages 1921-1936.
    17. Hakola, Tuulia, 2000. "Navigating through the Finnish Pension System," Discussion Papers 224, VATT Institute for Economic Research.

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    More about this item

    Keywords

    labour force participation; early retirement;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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