Labor market trajectories after age 50 and their relationship with health and early retirement in Spain

María Andrée López Gómez , Centre for Demographic Studies (CED)
Iñaki Permanyer, Centre for Demographic Studies

Increases of an aging population have prompted the government in Spain to increase the statutory retirement age from 65 to 67 by 2027. Even though life expectancy increased overall, it has not increased uniformly for everyone with people with lower education and lower income have lower life epectancies and lower healthy life expectancies. Additionally, different jobs produce different outcomes in terms of employment and employment security creating inequalities during woking lives and as a result, inequalities in retirement age. We aim to assess the relationship of late labor market trajectories (the decade of the 50´s) in Spain with the likelihood of exiting the labor force before the statutory retirement age of 65. We used the data from Continuous Sample of Working Lives (CSWL) from the social security system in Spain. The CSWL contains information on employment and pensions of a 4% sample of individuals (about 1.2 million) in contact with the social security system. The study sample is people from the 1941 to 1954 birth cohort who turned 65 years of age anytime during 2006 to 2019. We used sequence and cluster analysis to build typlogies of labor market trajectories from ages 50 to 59 and will assess the likelihood of an early exit depending on the type of labor trajectory. All analyses are segregated by sex. Preliminary findings showed four different types of labor market trajectories: mostly employed, unemployed, in disability and inactive.

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 Presented in Session 27. Flash session 1 Economics, Human Capital and Labour Markets