Labour Law, Social Norms and the Early Retirement Decision: An Empirical Study

20 Pages Posted: 19 Dec 2012

See all articles by Daniela Skugor

Daniela Skugor

Research Institute for Flexicurity, Labour Market Dynamics and Social Cohesion at Tilburg University (ReflecT)

Ruud Muffels

Tilburg University

Ton Wilthagen

Tilburg University

Date Written: November 1, 2012

Abstract

The study examines the influence of values, social norms and labour law and social security institutions on the decision to exit the labour market and to give up job security and even some income security for early retirement. The paper analyses transitions out of work into various alternative routes of early retirement including unemployment and disability, using comparative panel data in 23 countries including the Baltic States and many East-European countries. The data come from EU-SILC 2005-2008, matched with EVS data for 2008. The results confirm the well-known impact of the generosity of old-age pensions on early retirement but also show the influence of individual values and social norms. Benefit generosity has a larger impact on the early retirement decision of the low-skilled than the high-skilled. The effects of individual values and the early and statutory retirement age as set by labour law and social security regulations appear to differ by gender but not by education or skill level. Social norms have a substantial effect which is however shown to be different for men and women in some instances and more important for the early retirement decision of the high skilled worker than the low-skilled worker, whereas some commonly shared values in society such as a high work ethos exerts a stronger effect on the low skilled workers’ retirement decision.

Keywords: labour law, social security, early retirement, uncertainty, social norms, SILC, European Values Study (EVS), work ethos, leisure values

Suggested Citation

Skugor, Daniela and Muffels, Ruud and Wilthagen, Ton, Labour Law, Social Norms and the Early Retirement Decision: An Empirical Study (November 1, 2012). Netspar Discussion Paper No. 11/2012-046, Available at SSRN: https://ssrn.com/abstract=2190837 or http://dx.doi.org/10.2139/ssrn.2190837

Daniela Skugor

Research Institute for Flexicurity, Labour Market Dynamics and Social Cohesion at Tilburg University (ReflecT) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Ruud Muffels

Tilburg University ( email )

Postbus 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands
0031134662795 (Phone)
0031134663003 (Fax)

HOME PAGE: http://www.uvt.nl/

Ton Wilthagen (Contact Author)

Tilburg University ( email )

PO Box 90153
Tilburg, 5000 LE
Netherlands
0031134664512 (Phone)

HOME PAGE: http://https://research.tilburguniversity.edu/en/persons/ton-wilthagen

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