How Does Job Loss Affect the Timing of Retirement?
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Sewin Chan
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.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- Contributions Article
- Contestable Licensing
- Willingness to Pay for Environmental Quality: Testable Empirical Implications of the Growth and Environment Literature
- Why Do the Poor and the Less-Educated Pay More for Long-Distance Calls?
- A Model of Welfare-Reducing Settlement
- How Does Job Loss Affect the Timing of Retirement?
- Information, the Introduction of Roths, and IRA Participation
- Willingness to Pay for Environmental Quality: Testable Empirical Implications of the Growth and Environment Literature: Comment
- Quantity Controls, License Transferability, and the Level of Investment
- Instrumental Variables for Binary Treatments with Heterogenous Treatment Effects: A Simple Exposition
- Do Parents Value Changes in Test Scores? High Stakes Testing in Texas
- Law Serials Pricing and Mergers: A Portfolio Approach
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- Poverty Measurement Under Risk Aversion Using Panel Data
- Anti-trade Bias in Trade Policy and General Equilibrium
- Race and the Digital Divide
- Cost Recovery, Efficiency, and Economic Organization for Water Utilities
- A Minimum of Rivalry: Evidence from Transition Economies on the Importance of Competition for Innovation and Growth
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