Retirement Status and State Dependence: A Longitudinal Study of Older Men

Frederic P Slade

Journal of Labor Economics, 1987, vol. 5, issue 1, 90-105

Abstract: This paper examines the role of state dependence in explaining the retirement status of older men. Following from the work of James Heckman and others, apparent and true state dependence are distinguished in a dynamic retirement model. Using a two year longitudinal sample of men aged 58 to 62 in 1969, apparent and true state dependence are controlled for through estimation of an error- components model and a retirement-transition model. The results indicate substantial evidence of state dependence. Copyright 1987 by University of Chicago Press.

Date: 1987
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