How Does Job Loss Affect the Timing of Retirement?

35 Pages Posted: 14 Feb 2002 Last revised: 30 Dec 2022

See all articles by Sewin Chan

Sewin Chan

New York University (NYU) - Robert F. Wagner Graduate School of Public Service

Ann Huff Stevens

University of California, Davis - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: February 2002

Abstract

We use the Health and Retirement Study to examine the effects of job loss on factors affecting retirement incentives, including earnings, assets and pensions. We then estimate models of the retirement decision, which take into account the incentive to retire and any additional effects of displacement that are not captured by retirement incentives. There are substantial effects of displacement on retirement incentives as the result of changes to both earnings and pensions. Displacement significantly increases the probability of retirement, but only a small fraction of the displacement-induced changes in retirement behavior and labor force participation are the result of workers responding to these altered retirement incentives.

Suggested Citation

Chan, Sewin and Stevens, Ann, How Does Job Loss Affect the Timing of Retirement? (February 2002). NBER Working Paper No. w8780, Available at SSRN: https://ssrn.com/abstract=300742

Sewin Chan

New York University (NYU) - Robert F. Wagner Graduate School of Public Service ( email )

The Puck Building
295 Lafayette Street, Second Floor
New York, NY 10012
United States

Ann Stevens (Contact Author)

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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