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

TitleEarly Retirement Across Europe. Does Non-Standard Employment Increase Participation of Older Workers?
Publication TypeReport
Year of Publication2014
AuthorsBeen, Jim, and vanVliet, Olaf
Date Published2014///
InstitutionNetspar Discussion Paper No. 10-2014-044
CityTilburg , The Netherlands
Keywordsearly retirement, Europe, labor market institutions, non-standard employment, part-time employment, self-employment, social insurance programs
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.

URLhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=2510401