A structural dynamic analysis of retirement behaviour in the Netherlands
Article first published online: 22 NOV 2004
Copyright © 2004 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Special Issue: The Econometrics of Social Insurance
Volume 19, Issue 6, pages 739–759, 2004
How to Cite
Heyma, A. (2004), A structural dynamic analysis of retirement behaviour in the Netherlands. J. Appl. Econ., 19: 739–759. doi: 10.1002/jae.781
- Issue published online: 22 NOV 2004
- Article first published online: 22 NOV 2004
- Manuscript Revised: 27 NOV 2003
- Manuscript Received: 28 MAY 2003
This study focuses on determinants of elderly labour force participation and retirement decisions in the Netherlands. This is analysed by a dynamic programming model for the simultaneous choice of retirement age and route, which includes social insurance and private pensions, eligibility conditions for early retirement, lifecycle wage and health profiles, and layoffs. Special attention is given to opportunities for and the effect of participation policies. Results show that institutional structures of benefit and pension programmes are prime determinants of retirement, particularly eligibility conditions and potential substitution between exit routes, and that dynamic aspects are relevant for understanding retirement behaviour. Copyright © 2004 John Wiley & Sons, Ltd.