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Partial Retirement and Wage Profiles of Older Workers

Alan Gustman () and Thomas L. Steinmeier

No 1000, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Older workers are likely to face different wage offers for work while not retired than for work while partially retired. Conventional analyses of wage profiles pool all waqe observations without distin-guishing among individuals according to retirement status.Our empirical analysis suggests the following conclusions.1)Wages for work while not retired and for work while partially retiredare significantly different from one another.2) wage offers facing older workers may vary considerably between those who do and do not face lower limit constraints requiring full-time work or none at all on their main job. 3) Failing to distinguish between wages paid to the partially retired and to the not retired causes a sizable exaggeration of the decline with experience in the wage offer for work while not retired.

Date: 1982-10
Note: LS
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Published as Gustman, Alan L. and Thomas L. Steinmeier. "The Effect of Partial Retirement on Wage Profiles of Older Workers." Industrial Relations, Vol. 24, No. 2, (Spring 1985), pp. 257-265.

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