Labor Market Status and Transitions during the Pre-Retirement Years: Learning from International Differences / Arie Kapteyn, James P. Smith, Arthur van Soest, James Banks.

Format:

Book

Author/Creator:

Kapteyn, Arie.

Contributor:

National Bureau of Economic Research.

Smith, James P.

van Soest, Arthur.

Banks, James.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13536.

NBER working paper series no. w13536

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Labor Market Status and Transitions during the Pre-Retirement Years

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

Many western industrialized countries face strong budgetary pressures due to the aging of the baby boom generations and the general trends toward earlier ages of retirement. We use the American PSID and the European Community Household Panel (ECHP) to explain differences in prevalence and dynamics of self-reported work disability and labor force status. To that end we specify a two-equation dynamic panel data model describing the dynamics of labor force status and self-reported work disability. When we apply the U.S. parameters to the equations for the thirteen European countries we consider, the result is generally that work disability is lower and employment is higher. Furthermore, measures of employment protection across the different countries suggest that increased employment protection reduces reentry into the labor force and hence is a major factor explaining employment differences in the pre-retirement years.

Notes:

Print version record

October 2007.