IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/1860.html
   My bibliography  Save this paper

Gradual retirement and lengthening of working life

Author

Listed:
  • Ilmakunnas, Pekka
  • Ilmakunnas, Seija

Abstract

In order for the part-time pension to make sense economically, it should extend the length of the working career. An interesting question is also whether the timing of retirement and willingness to work after retirement are related. We use data on the aspirations of individuals regarding their old-age retirement behaviour to estimate a multivariate probit model with three binary dependent variables: partial retirement, planning to continue working beyond age 63, and planning to continue working while on retirement. The model is estimated using simulated maximum likelihood. The probability of being on part-time pension increases with the length of working career, but decreases with wage. It is positively related to an indicator of chronic illness. Age has a positive effect on the probability of thinking about continuing working after age 63, which is natural since in the older age cohorts those preferring to retire early have already done that. Higher wage and private pension insurance have a negative effect on the probability of continuing to work, while the level of education increases it. Women and those having mental strain in their job are less likely to postpone retirement. The probability of continuing work while retired is difficult to predict. Only good self-assessed health seems to play an important role in this decision-making. Being on partial retirement has no positive impact on the probability of preferring to stay longer at work. This gives support to the worries that partial retirement is a tool that helps in increasing the labour force participation of the aging labour force, but at a relatively high cost.

Suggested Citation

  • Ilmakunnas, Pekka & Ilmakunnas, Seija, 2006. "Gradual retirement and lengthening of working life," MPRA Paper 1860, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:1860
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/1860/1/MPRA_paper_1860.pdf
    File Function: original version
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nikolaus Graf & Helmut Hofer & Rudolf Winter-Ebmer, 2009. "Labour Supply Effects of a Subsidised Old-Age Part-Time Scheme in Austria," Economics working papers 2009-06, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Börsch-Supan, Axel & Bucher-Koenen, Tabea & Kluth, Sebastian & Haupt, Marlene & Goll, Nicolas, 2015. "Vor- und Nachteile höherer Flexibilität als Instrument zur Erhöhung der Beschäftigung Älterer," MEA discussion paper series 201506, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    3. Börsch-Supan, Axel & Bucher-Koenen, Tabea & Kluth, Sebastian & Kutlu Koc, Vesile & Goll, Nicolas, 2015. "Internationale Evidenz zu flexiblen Übergängen in den Ruhestand," MEA discussion paper series 201505, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.

    More about this item

    Keywords

    part-time retirement; retirement age; retirement expectations;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:1860. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.