Retirement: Does Individual Unemployment Matter? Evidence from Danish Panel Data 1980–2009
The paper studies the impact from variations in unemployment on retirement among older workers. We integrate unemployment variations with early retirement programs and other pathways out of the labor force. The paper describes retirement programs, policy changes, labor force participation among older workers and presents a new estimate of the trend in the average age of retirement. Individual panel data for the last 25 years are used in estimations of the impact from individual unemployment on the retirement decision. Unemployment is found highly significant and quantitatively important for the retirement decision. We conclude that there is a clear risk of a cyclical downturn resulting in a more long run reduction in productive capacity with negative consequences for the budget of the public sector.
|Date of creation:||May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
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.:
- Romain Duval & Mehmet Eris & Davide Furceri, 2011. "The Effects of Downturns on Labour Force Participation: Evidence and Causes," OECD Economics Department Working Papers 875, OECD Publishing.
- Clemens Hetschko & Andreas Knabe & Ronnie Schöb, 2011.
"Changing Identity: Retiring from Unemployment,"
FEMM Working Papers
110017, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
- Clemens Hetschko & Andreas Knabe & Ronnie Schöb, 2011. "Changing Identity: Retiring from Unemployment," CESifo Working Paper Series 3540, CESifo Group Munich.
- Hetschko, Clemens & Knabe, Andreas & Schöb, Ronnie, 2011. "Changing identity: Retiring from unemployment," Discussion Papers 2011/11, Free University Berlin, School of Business & Economics.
- Clemens Hetschko & Andreas Knabe & Ronnie Schöb, 2011. "Changing Identity: Retiring from Unemployment," SOEPpapers on Multidisciplinary Panel Data Research 399, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Ann Huff Stevens & Sewin Chan, 1999.
"Employment and Retirement Following a Late-Career Job Loss,"
American Economic Review,
American Economic Association, vol. 89(2), pages 211-216, May.
- Sewin Chan & Ann Huff Stevens, 1999. "Employment and Retirement Following a Late Career Job Loss," Departmental Working Papers 199903, Rutgers University, Department of Economics.
- Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
- Kyyrä, Tomi & Wilke, Ralf A., 2004.
"Reduction in the Long-Term Unemployment of the Elderly: A Success Story from Finland,"
ZEW Discussion Papers
04-63, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Tomi Kyyrä & Ralf A. Wilke, 2007. "Reduction in the Long-Term Unemployment of the Elderly: A Success Story from Finland," Journal of the European Economic Association, MIT Press, vol. 5(1), pages 154-182, 03.
- Tomi Kyyrä & Ralf Wilke, 2004. "Reduction in the Long-Term Unemployment of the Elderly: A Success Story from Finland," Discussion Papers 346, Government Institute for Economic Research Finland (VATT).
- Cremer, Helmuth & Lozachmeur, Jean-Marie & Pestieau, Pierre, 2009. "Use and misuse of unemployment benefits for early retirement," European Journal of Political Economy, Elsevier, vol. 25(2), pages 174-185, June.
- Courtney C. Coile & Phillip B. Levine, 2011. "Recessions, Retirement, and Social Security," American Economic Review, American Economic Association, vol. 101(3), pages 23-28, May.
- David H. Autor & Mark G. Duggan, 2003. "The Rise In The Disability Rolls And The Decline In Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 157-205, February.
- Tatsiramos, Konstantinos, 2010. "Job displacement and the transitions to re-employment and early retirement for non-employed older workers," European Economic Review, Elsevier, vol. 54(4), pages 517-535, May.
- Jean-Olivier Hairault & Francois Langot & Thepthida Sopraseuth, 2010. "Distance to Retirement and Older Workers' Employment: The Case for Delaying the Retirement Age," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 1034-1076, 09.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6538. 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.