Labour Market Decisions of the Self-Employed in the Netherlands at the Statutory Retirement Age

GARCIA Amparo Nagore, Cristina Rossi and Arthur van Soest ()

No 2018-13, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: We investigate retirement decisions of the self-employed in the Netherlands using administrative data. We focus on the time period around which individuals reach the statutory retirement age (SRA, 65 years in most cases). After the statutory retirement age, each Dutch resident receives the Old Age State Pension annuity (AOW), providing an income at the subsistence level. Both the timing and the magnitude of this state pension are well known in advance. According to a standard leisure/consumption trade-off life cycle model, receiving AOW should therefore have no impact on labour supply choices. While employees often face the demand side restriction of mandatory retirement, this does not apply to the self-employed. We investigate whether retirement and earnings of the self-employed change at the SRA and whether any such changes vary with, e.g., the level of financial wealth. We find a peak in retirement when self-employed reach the SRA. The evidence suggests that the benchmark of retiring at 65 is acting as a driver, due to behavioural features like anchoring or a social norm.

Keywords: Life cycle model; retirement decision; reference point; social norm (search for similar items in EconPapers)
JEL-codes: L26 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2018-07
New Economics Papers: this item is included in nep-age
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.liser.lu/publi_viewer.cfm?tmp=4225 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Working Paper: Labour Market Decisions of the Self-Employed in the Netherlands at the Statutory Retirement Age (2018)
Working Paper: Labour Market Decisions of the Self-Employed in the Netherlands at the Statutory Retirement Age (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:irs:cepswp:2018-13

Access Statistics for this paper

More papers in LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER) 11, Porte des Sciences, L-4366 Esch-sur-Alzette, G.-D. Luxembourg. Contact information at EDIRC.
Bibliographic data for series maintained by Library and Documentation ( this e-mail address is bad, please contact ).