Abstract
Despite the relatively higher frequency of job displacement among older workers in Europe, little is known about its effect on the work-retirement decision. Employing individual data from the European Community Household Panel for a number of countries with differences in their institutional environments, the effect of job displacement for non-employed workers is identified separately for the transitions into re-employment and retirement. The findings suggest that in countries with relatively more generous unemployment insurance provisions for the older unemployed, which offer a pathway to early retirement, 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.
Original language | English |
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Pages (from-to) | 517-535 |
Number of pages | 19 |
Journal | European Economic Review |
Volume | 54 |
Issue number | 4 |
DOIs | |
Publication status | Published - May 2010 |
Externally published | Yes |
Keywords
- Institutions
- Job displacement
- Retirement
- Unemployment duration