The Effect of Job Displacement on the Transitions to Employment and Early Retirement for Older Workers in Four European Countries

Konstantinos Tatsiramos

No 3069, IZA Discussion Papers from IZA Network @ LISER

Abstract: Despite the increased frequency of job loss for older workers in Europe, little is known on its effect on the work-retirement decision. Employing individual data from the European Community Household Panel for Germany, Italy, Spain, and the U.K., a multivariate competing-risks hazard model is estimated in which the effect of job displacement is identified separately for transitions into re-employment and retirement. The findings suggest that in countries with institutional provisions for older unemployed which offer a pathway to early retirement such as, Germany and Spain, older displaced workers exhibit lower re-employment and higher retirement rates compared to the non-displaced. These results are robust to dynamic selection due to unobserved heterogeneity and to the endogeneity of displacement.

Keywords: job displacement; job loss; unemployment duration; retirement; competing risks (search for similar items in EconPapers)
JEL-codes: J14 J26 J63 J64 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2007-09
New Economics Papers: this item is included in nep-age, nep-eec and nep-lab
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Citations: View citations in EconPapers (5)

Published - revised version published as "Job displacement and the transitions to re-employment and early retirement for non-employed older workers" in: European Economic Review, 2010, 54 (4), 517-535

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