Early Retirement Across Europe. Does Non-Standard Employment Increase Participation of Older Workers?

40 Pages Posted: 16 Oct 2014

See all articles by Jim Been

Jim Been

Leiden University - Department of Economics; Netspar

Olaf van Vliet

Leiden University - Leiden Law School; Leiden University - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 15, 2014

Abstract

In many European countries, the labor market participation of older workers is considerably lower than the labor market participation of prime-age workers. This study analyzes the variation in labor market withdrawal of older workers across 13 European countries over the period 1995-2008. We seek to contribute to existing macro-econometric studies by taking non-standard employment into account, by relating the empirical model more explicitly to optional value model theory on retirement decisions and by using a two-step IV-GMM estimator to deal with endogeneity issues. The analysis leads to the conclusion that part-time employment is negatively related to labor market withdrawal of older men. This relationship is less strong among women. Additionally, we find that part-time employment at older ages does not decrease the average actual hours worked. Furthermore, the results show a positive relationship between unemployment among older workers and early retirement similar to previous studies.

Keywords: early retirement, part-time employment, self-employment, social insurance programs, labor market institutions

JEL Classification: C33, C36, J14, J26

Suggested Citation

Been, Jim and van Vliet, Olaf, Early Retirement Across Europe. Does Non-Standard Employment Increase Participation of Older Workers? (October 15, 2014). Netspar Discussion Paper No. 10-2014-044. Available at SSRN: https://ssrn.com/abstract=2510401 or http://dx.doi.org/10.2139/ssrn.2510401

Jim Been (Contact Author)

Leiden University - Department of Economics ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/been.html

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Olaf Van Vliet

Leiden University - Leiden Law School ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

Leiden University - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

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