The Recent Rise of Labor Force Participation of Older Workers in Sweden

32 Pages Posted: 14 May 2018

See all articles by Lisa Laun

Lisa Laun

IFAU - Institute for Labour Market Policy Evaluation

Marten Palme

Stockholm University - Department of Economics; IZA Institute of Labor Economics

Date Written: May 2018

Abstract

This paper studies the background to the increase in labor force participation of older workers in Sweden since 2000. In the first part, we study how the characteristics of the elderly have changed with respect to health, education level and work environment, as well as the impact of joint decision-making within the household. In the second part, we study the importance of institutional changes, including a major reform of the old-age pension system, introduction of tax credits for older workers, changes of the mandatory retirement age and stricter eligibility criteria in the disability insurance program. We find that the rise in labor force participation has coincided with improvements in health and educational attainment across birth cohorts as well as increased screening stringency in the disability insurance program.

Suggested Citation

Laun, Lisa and Palme, Marten, The Recent Rise of Labor Force Participation of Older Workers in Sweden (May 2018). NBER Working Paper No. w24593, Available at SSRN: https://ssrn.com/abstract=3177952

Lisa Laun (Contact Author)

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden
+46 (0)18 471 60 56 (Phone)

Marten Palme

Stockholm University - Department of Economics ( email )

Universitetsvägen 10 A
House A, floor 4 and 7
Frescati, Stockholm
Sweden
+46163307 (Phone)

IZA Institute of Labor Economics

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

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