Demanding occupations and the retirement age

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Demanding Occupations and the Retirement Age ABSTRACT Demanding Occupations and the Retirement Age 1In several countries where pensions are reformed and the retirement age is increased, the issue came up to make an exception for workers with demanding occupations, since health considerations may make it unreasonable to expect them to work longer. We analyze unique Dutch survey data on the public's opinions on what are demanding occupations, on whether it is justified that someone with a demanding occupation can retire earlier, and on the willingness to contribute to an earlier retirement scheme for such occupations through higher taxes. A representative sample of Dutch adults answered several questions about hypothetical persons with five different jobs. We use panel data models, accounting for confounding factors affecting the evaluations of the demanding nature of the jobs as well as their reasonable retirement age or willingness to contribute to an early retirement scheme. We find that the Dutch think that workers in demanding occupations should be able to retire earlier. A one standard deviation increase in the perceived demanding nature of an occupation translates into a twelve months decrease in the reasonable retirement age and a 30 to 40 percentage points increase in the willingness to contribute to an early retirement scheme for that occupation. There is some evidence that respondents whose own job is similar to the occupation they evaluate find this occupation more demanding than other respondents, but respondents are also willing to contribute to early retirement of demanding occupations not similar to their own.JEL Classification: J26, J81, H55

Differentiating Retirement Age to Compensate for Career Arduousness

“…9 That shift of focus partially reflects the European context underpinning this paper, where retirement is still largely driven by State-edicted rules, and decided paternalistically by the authorities. And of course, given its focus on work-related long-term health differences, this paper connects with the literature on demanding occupations and (early)retirement provision (Pestieau and Racionero, 2016;Vermeer et al, 2016).…”

Differentiating Retirement Age to Compensate for Health Differences

“…That shift of focus partially reflects the European context underpinning this paper, where retirement is still largely driven by State-edicted rules, and decided paternalistically by the authorities. Along those lines, this paper relates to the literature on demanding occupations and (early)retirement provision (Pestieau and Racionero, 2016;Vermeer, Mastrogiacomo, to individualised checks, as it is the case to get disability benefits.…”

Early Retirement of Employees in Demanding Jobs: Evidence from a German Pension Reform

“…Early retirement options offer partial insurance for sub-groups of workers against negative consequences of being unable to continue working until the normal retirement age (NRA) 2 (Börsch-Supan et al, 2021). An important group at risk of exiting employment early is employees exposed to high job demand 3 for an extended time during their working life (Deutscher Bundestag, 2006Bundestag, , 2014Vermeer et al, 2016;OECD, 2018). To target employees with high job demand, eligibility criteria for early retirement programs include a minimum number of contribution years (i.e., years in employment) or a high labor market attachment in the second half of the career.…”

“…Workers in more demanding jobs are more likely to retire early from employment (Blekesaune and Solem, 2005). Therefore, abolishing early retirement options may particularly negatively affect employees who are exposed to high job demand (Vermeer et al, 2016). 9 Instead of extending employment, they may substitute early retirement with social support programs or inactivity that bridges the time until retirement benefits can be drawn (Chirikos and Nestel, 1991).…”