How Does Job Loss Affect the Timing of Retirement?
This paper estimates the extent to which reduced employment following job loss among older workers can be explained as a response to altered pension incentives and earnings opportunities. Using data from the Health and Retirement Study, we first examine how workers’ earnings, assets, pensions and th...
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Published in | Contributions to economic analysis & policy Vol. 3; no. 1; pp. 1 - 24 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
De Gruyter
24.05.2004
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Subjects | |
Online Access | Get full text |
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Summary: | This paper estimates the extent to which reduced employment following job loss among older workers can be explained as a response to altered pension incentives and earnings opportunities. Using data from the Health and Retirement Study, we first examine how workers’ earnings, assets, pensions and the resulting financial incentive to retire are affected by job loss. We find important effects of job loss on the main financial components of workers’ incentive to retire. We then examine retirement behavior after job loss, controlling for these changed retirement incentives, along with any additional effects of displacement not captured by retirement incentives. We find that the observed increased rates of retirement among displaced workers go far beyond these purely financial considerations. Very little of the reduced employment among older job losers can be explained by changes in wages and pension-related retirement incentives. Other barriers to reemployment may be more important explanations for the low employment rates of recently displaced older workers. |
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Bibliography: | ArticleID:1538-0645.1187 bejeap.2004.3.1.1187.pdf istex:1183C0BA402B65999BEF38A987A25EA1B9422582 ark:/67375/QT4-JPV371D7-S ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 1538-0645 1538-0645 |
DOI: | 10.2202/1538-0645.1187 |