Labor Market Status and Transitions during the Pre-Retirement Years Learning from International Differences

Arie Kapteyn, James Smith, Arthur van Soest (avas@uvt.nl) and James Banks

No WR-536, Working Papers from RAND Corporation

Abstract: 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. The authors 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 they specify a two-equation dynamic panel data model describing the dynamics of labor force status and self-reported work disability. When they 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.

Keywords: disability; employment policies; cross-national comparisons; labor force dynamics (search for similar items in EconPapers)
JEL-codes: H3 J2 J6 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2007-11
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Citations: View citations in EconPapers (1)

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Related works:
Chapter: Labor Market Status and Transitions during the Pre-Retirement Years: Learning from International Differences (2010)
Working Paper: Labor Market Status and Transitions During the Pre-Retirement Years: Learning from International Differences (2007)
Working Paper: Labor Market Status and Transitions during the Pre-Retirement Years: Learning from International Differences (2007)
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