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The Effects of Job Characteristics on Retirement

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  • Péter Hudomiet
  • Michael D. Hurd
  • Andrew Parker
  • Susann Rohwedder

Abstract

This paper presents results based on a survey fielded in the RAND American Life Panel that queried older workers about their current, desired, and expected job characteristics, and about how certain job characteristics would affect their retirement. Having access to flexible work hours was found to be the most consistent predictor of retirement expectations. For example, we estimated that the fraction of individuals working after age 70 would be 32.2% if all workers had flexible hours, while the fraction working would be 17.2% if none had the option of flexible hours. We further found that job stress, physical and cognitive job demands, the option to telecommute, and commuting times were also strong predictors of retirement expectations. By comparing workers’ current job characteristics with those that individuals desire, we show that people would like preretirement jobs to be less cognitively and physically demanding and more sociable compared to their current jobs. We also find that most workers worry about their health and the demands of their jobs when they think about their future work trajectory, but relatively few were worried that their employers would retain them. Having access to part-time jobs, and expected longevity were less important predictors of retirement.

Suggested Citation

  • Péter Hudomiet & Michael D. Hurd & Andrew Parker & Susann Rohwedder, 2019. "The Effects of Job Characteristics on Retirement," NBER Working Papers 26332, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:26332
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    References listed on IDEAS

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    Cited by:

    1. Romuald Meango & Esther Mirjam Girsberger, 2023. "Identification of Ex ante Returns Using Elicited Choice Probabilities: an Application to Preferences for Public-sector Jobs," Papers 2303.03009, arXiv.org, revised Jun 2024.
    2. Acemoglu, Daron & Mühlbach, Nicolaj Søndergaard & Scott, Andrew J., 2022. "The rise of age-friendly jobs," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    3. Italo Lopez Garcia & Kathleen J. Mullen & Jeffrey B. Wenger, 2022. "The Role of Physical, Cognitive, and Interpersonal Occupational Requirements and Working Conditions on Disability and Retirement," Working Papers wp448, University of Michigan, Michigan Retirement Research Center.
    4. Guy Lacroix & Pierre-Carl Michaud, 2024. "Tax Incentives and Older Workers: Evidence from Canada," Cahiers de recherche / Working Papers 02, Chaire de recherche Jacques-Parizeau en politiques économiques / Jacques-Parizeau Research Chair in Economic Policy.
    5. Philip Sauré & Arthur Seibold & Elizaveta Smorodenkova & Hosny Zoabi, 2023. "Occupations Shape Retirement across Countries," CESifo Working Paper Series 10365, CESifo.
    6. Pamela Giustinelli & Matthew D. Shapiro, 2024. "SeaTE: Subjective Ex Ante Treatment Effect of Health on Retirement," American Economic Journal: Applied Economics, American Economic Association, vol. 16(2), pages 278-317, April.
    7. Steven G. Allen, 2019. "Demand for Older Workers: What Do Economists Think? What Are Firms Doing?," NBER Working Papers 26597, National Bureau of Economic Research, Inc.
    8. Allen, Steven G., 2023. "Demand for older workers: What do we know? What do we need to learn?," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    9. Brindusa Anghel & Aitor Lacuesta, 2020. "Ageing, productivity and employment status," Economic Bulletin, Banco de España, issue 1/2020.
    10. Brindusa Anghel & Marianela Cozzolino, 2020. "Teleworking in Spain," Economic Bulletin, Banco de España, issue 2/2020.

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    More about this item

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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