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Hours of work and retirement behavior

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Abstract

Using a novel dataset from the 2006 Portuguese Labor Force Survey this paper examines the impact of a voluntary reduction in hours of work, before retirement, on the moment of exit from the labor force. If, as often suggested, flexibility in hours of work is a useful measure to postpone retirement, then a reduction in working hours should be associated with retirement at later ages. Results prove otherwise suggesting that reducing hours of work before retirement is associated with early exits from the labor force. A reduction in hours of work seems to signal the worker’s wish to retire sooner rather than to announce the desire of remaining in the labor market.

Suggested Citation

  • C. Sofia Machado & Miguel Portela, 2011. "Hours of work and retirement behavior," NIPE Working Papers 02/2011, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:02/2011
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    Cited by:

    1. Elsayed, Ahmed & de Grip, Andries & Fouarge, Didier & Montizaan, Raymond, 2018. "Gradual retirement, financial incentives, and labour supply of older workers: Evidence from a stated preference analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 277-294.
    2. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The Effect of Firms' Partial Retirement Policies on the Labour Market Outcomes of Their Employees," IZA Discussion Papers 7513, Institute of Labor Economics (IZA).
    3. Haan, Peter & Tolan, Songül, 2019. "Labor supply and fiscal effects of partial retirement – The role of entry age and the timing of pension benefits," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    4. Macchiarelli, Corrado & Aranki, Ted, 2013. "Employment duration and shifts into retirement in the EU," Working Paper Series 1517, European Central Bank.
    5. Andrea Albanese & Bart Cockx & Yannick Thuy, 2020. "Working time reductions at the end of the career: Do they prolong the time spent in employment?," Empirical Economics, Springer, vol. 59(1), pages 99-141, July.
    6. Rutten, Albert & van Vuuren, Daniël & Knoef, Marike, 2022. "Employment Effects of Incentivized Gradual Retirement Plans," Other publications TiSEM 37eba9e7-b6ff-4f31-9c42-3, Tilburg University, School of Economics and Management.
    7. Carmen Camacho & Fabio Mariani & Luca Pensieroso, 2017. "Illegal immigration and the shadow economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1050-1080, December.
    8. Rebecca Schrader, 2021. "The causal effect of partial retirement on older workers’ labor force participation," Working Papers 215, Bavarian Graduate Program in Economics (BGPE).
    9. Mário Amorim-Lopes & Álvaro Almeida & Bernardo Almada-Lobo, 2019. "Physician Emigration: Should they Stay or Should they Go? A Policy Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 54(3), pages 905-931, October.
    10. Terhi Ravaska, 2023. "Do reduced working hours for older workers have health consequences and prolong work careers?," Working Papers 6, Finnish Centre of Excellence in Tax Systems Research.
    11. Muriel Dejemeppe & Catherine Smith & Bruno der Linden, 2015. "Did the Intergenerational Solidarity Pact increase the employment rate of older workers in Belgium? A macro-econometric evaluation," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    12. Ravaska, Terhi, 2023. "Do reduced working hours for older workers have health consequences and prolong work careers?," Working Papers 153, VATT Institute for Economic Research.
    13. Mário Amorim Lopes & Álvaro Santos Almeida & Bernardo Almada-Lobo, 2018. "Forecasting the medical workforce: a stochastic agent-based simulation approach," Health Care Management Science, Springer, vol. 21(1), pages 52-75, March.
    14. İsmail ŞENTÜRK, 2020. "Desired Labour Supply of the Unemployed in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society.
    15. repec:diw:diwwpp:dp1679 is not listed on IDEAS
    16. Monika Riedel & Helmut Hofer & Birgit Wögerbauer, 2015. "Determinants for the transition from work into retirement in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-19, December.

    More about this item

    Keywords

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    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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