Transitions Out of and Back to Employment Among Older Men and Women in the UK

Publication type

Conference Paper

Series

National Conference of Labour Economics

Author

Publication date

September 23, 2005

Abstract:

This paper presents the frst comprehensive analysis of older men and women's labour market transitions in the United Kingdom using data from the British Household Panel Survey (BHPS), 1990-2004. When looking at the empirical hazard rates, I find large peaks in the exit rates out of employment at ages 60 (women) and 65 (both sexes) which occur in the exact birthday month. This points towards strong incentives of pension schemes. Discrete-time hazard regression analysis shows that benefits and health status are the two most important determinants of retirement, with effects that are larger than found in previous studies. When modelling unobserved heterogeneity I find that women are twice as likely as men to be 'movers' between work and non-work.

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