Getting Tired of Work, or Re-Tiring in Absence of Decent Job Opportunities? Some Insights from an Estimated Random Utility/Random Opportunity Model on Belgian Data.
69 Pages Posted: 7 Nov 2015
Date Written: October 2015
We report estimates of a version of the Random Utility and Random Opportunity (RURO) model of job choice (Aaberge, Dagsvik and Strøm, 1995, and Aaberge, Colombino and Strøm, 1999) on Belgian data (SILC 2007). The paper exploits the distinction between preference factors and individual differences in opportunities in such a RURO-model, in order to obtain a more nuanced picture of labour market participation of the elderly. More specifically, the estimated model allows to give a quantitative answer to the question to what extent lower labour market participation of elderly is due to changing preferences (executing a job might become less enjoyable with age) or differences in opportunities (elderly getting less, or less attractive job offers).
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