Retirement patterns from career employment
ABSTRACT This article investigates how older Americans leave their career jobs and estimates the extent of intermediate labor force activity (bridge jobs) between full-time work on a career job and complete labor-force withdrawal.
Using data from the Health and Retirement Study, we explored the work histories and retirement patterns of a cohort of retirees aged 51 to 61 in 1992 during a 10-year period in both cross-sectional and longitudinal contexts. We examined determinants of retirement patterns in a multinomial logistic regression model.
We found that a majority of older Americans with career jobs retire gradually, in stages, rather than all at once. We also found that the utilization of bridge jobs was more common among younger respondents, respondents without defined-benefit pension plans, and respondents at both the lower and upper ends of the wage distribution.
Older Americans are now working longer than pre-1980s trends would have predicted. Given concerns about the traditional sources of retirement income (Social Security, employer pensions, and prior savings), older Americans may have to rely more on earnings. This article suggests that many are already doing so by moving to bridge jobs after leaving their career employment.
- SourceAvailable from: Olaf van Vliet
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- "Hence, part-time work 1 Which may be agreed upon by employer and employee. provides the opportunity to retire gradually by providing a bridge between full-time employment and retirement (Gustman & Steinmeier, 1984; Ruhm, 1990; Quinn & Kozy, 1996; Kim & DeVaney, 2005; Cahill et al., 2006; Ruhm, 2006). Reday-Mulvey & Delsen (1996) indicate the importance of such 'bridge jobs' across OECD countries. "
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.
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- "But, the findings with regard to income or financial resources are ambiguous. Cahill et al. (2006), for example, found that bridge employment was more common among respondents at both the lower and upper ends of the wage distribution. Wang et al. (2008) suggest that this may stem from the fact that bridge employment covers a variety of employment types. "
ABSTRACT: Self-employment among older age groups is rising. A better understanding of the role of self-employment in extending the working lives of individuals is, therefore, relevant from a policy perspective. By bridging the gap in the literature on work/retirement decision-making and entrepreneurship, the present study examines the factors associated with entry into self-employment post-retirement, after a worker has left a regular salaried position. This decision is modelled as a choice between full retirement and prolonged labour force participation, in the form of either a typical wage-providing job or self-employment. Data were derived from the Netherlands Interdisciplinary Demographic Institute Work and Retirement Panel, an ongoing longitudinal survey of older workers (50 years and over) employed by three private sector organisations and employed as civil servants in the Netherlands. These data were then analysed using multinomial logistic regression analysis. The results of this study show that the decision to pursue self-employment is primarily taken by retirees with relatively high levels of financial and human capital (wealth and educational attainment), those possessing entrepreneurial attitudes (high self-efficacy scores) and those who perceive their retirements to be completely involuntary. The results lend support to self-employment being selected as a postretirement path through opportunity rather than out of necessity. The fact that the retirements of the studied population were generally quite early, while not considered involuntary also suggests that the timing of the decision to retire may be driven by the emergence of new (business) opportunities.European Journal of Ageing 09/2014; 11(3). DOI:10.1007/s10433-013-0303-7 · 1.27 Impact Factor
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- "The data available from other countries over the last 15 years show that the majority of older workers experience at least one transition of this kind between full-time working and full retirement (Cahill et al. 2006; Giandrea et al. 2007; Weckerle and Shultz 1999). These transitions occur both within the same occupation and in different occupations, and they may take the form either of salaried jobs or of some form of self-employment (Beehr and Bennett 2007). "
ABSTRACT: http://www.routledge.com/books/details/9780415829090/ This chapter begins by outlining the salient features of Spain’s socio-demographic context, in particular the marked ageing of the population and the foreseeable rise in the dependency rate in the coming years, as well as the immediate impact of these trends on the labor market and retirement and pension systems. We then go on to look at the conditioning factors which affect work-life extension policies and practices, and the obstacles in the way of their adoption. In the third place, we provide data on early and compulsory retirement in Spain in recent years, and a description of the legal alternatives available to those wishing to continue working, such as partial or flexible retirement. Finally, we sketch the current state of work-life extension in Spain, illustrating the scant possibilities available and experiences of voluntary working after retirement. The chapter ends with some conclusions and our recommendations on the future of bridge employment in Spain.Bridge Employment: A Research Handbook, 1ª edited by Carlos-María Alcover, Gabriela Topa, Emma Parry, Franco Fraccaroli, Marco Depolo, 04/2014: chapter Bridge employment in Spain. A possible option to postpone retirement: pages 115-137; Routledge., ISBN: 978-0-415-82909-0