How Do Unemployed Workers Behave Prior to Retirement? A Multi-State Multiple-Spell Approach

36 Pages Posted: 10 Apr 2017

See all articles by Ewa Gałecka-Burdziak

Ewa Gałecka-Burdziak

Warsaw School of Economics (SGH)

Marek Góra

Warsaw School of Economics (SGH); IZA Institute of Labor Economics

Abstract

We examine the behaviour of unemployed older workers up to five years prior to the point at which they can transition out of unemployment because they become eligible to receive pension benefits. We use a unique dataset covering the unemployment histories (longitudinal data) of individuals born between 1940 and 1965 who were registered with any of the public employment offices in Poland. Thus, we study a whole population of individuals who experienced this type of transition over the time period 1996-2015. We examine the transition from unemployment to retirement as a multi-year process. We analyse multiple unemployment spells, identify transition pathways, and look for patterns in these transitions. Moreover, we estimate a conditional risk set model (a stratified Cox model). Our research proves that being close to the point at which they are eligible to receive pension benefits leads individuals 'wait' to fulfil these eligibility criteria.

Keywords: elder workers unemployment, retirement, transition pathways, multiple unemployment spells, recurrent event data, longitudinal analysis

JEL Classification: C14, C41, H55, J14, J22, J26, J64

Suggested Citation

Gałecka-Burdziak, Ewa and Góra, Marek, How Do Unemployed Workers Behave Prior to Retirement? A Multi-State Multiple-Spell Approach. IZA Discussion Paper No. 10680, Available at SSRN: https://ssrn.com/abstract=2949116

Ewa Gałecka-Burdziak (Contact Author)

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554
Poland

Marek Góra

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554
Poland

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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