Joining late, leaving early? Immigrant-native disparities in labor market exit

Olof Åslund (), Fredrik Larsson and Lisa Laun
Additional contact information
Olof Åslund: Uppsala University, Department of Economics, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden
Fredrik Larsson: Swedish Public Employment Agency, Postal: Swedish Public Employment Agency

No 2023:15, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: Theory and empirical findings on retirement determinants suggest that we may expect differences in labor market exit between native and foreign-born workers. Despite many countries seeing rising immigrant shares in their aging populations, alongside significant labor market disparities, the issue has so far received limited attention. Population-wide administrative data for Sweden show that the hazard rate to retirement is greater among immigrants already from age 50. But approaching age 65, especially marginal migrant groups have a stronger tendency to remain in the labor force and thus not adhering to the norm of retiring at a specific age. Education and family situation explain little of the retirement gaps, whereas labor market history, health, and occupational allocations are important determinants. Immigrant-native retirement differences are greater among men than among women. Overall findings suggest economic necessity and/or opportunity rather than varying preferences as drivers of differentials.

Keywords: labor market exit; immigrants; retirement hazard (search for similar items in EconPapers)
JEL-codes: C93 J64 J68 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2023-06-12
New Economics Papers: this item is included in nep-age, nep-eur, nep-lab and nep-mig
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Citations: View citations in EconPapers (1)

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Journal Article: Joining late, leaving early? Immigrant-native disparities in labor market exit (2024)
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