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Retirement: Does Individual Unemployment Matter? Evidence from Danish Panel Data 1980–2009

Author

Listed:
  • Filges, Trine

    (Danish National Centre for Social Research (SFI))

  • Larsen, Mona

    (Danish National Centre for Social Research (SFI))

  • Pedersen, Peder J.

    (Aarhus University)

Abstract

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.

Suggested Citation

  • Filges, Trine & Larsen, Mona & Pedersen, Peder J., 2012. "Retirement: Does Individual Unemployment Matter? Evidence from Danish Panel Data 1980–2009," IZA Discussion Papers 6538, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6538
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    References listed on IDEAS

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    6. 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.
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    8. Clemens Hetschko & Andreas Knabe & Ronnie Schöb, 2014. "Changing Identity: Retiring From Unemployment," Economic Journal, Royal Economic Society, vol. 124(575), pages 149-166, March.
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    Cited by:

    1. Shuolin Shi & Ralf A. Wilke, 2022. "Variable selection with group structure: exiting employment at retirement age—a competing risks quantile regression analysis," Empirical Economics, Springer, vol. 62(1), pages 119-155, January.

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    More about this item

    Keywords

    unemployment; labor force participation; retirement;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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