Arbeitspapier

Private wealth and job exit at older age: a random effects model

Private wealth holdings are likely to become an increasingly important determinant in the job exit decision of elderly workers. Net wealth may correlate with worker's characteristics that also determine the exit out of a job. It is therefore important to include a rich set of observed characteristics in an empirical model for retirement in order to measure the (marginal) effect of wealth on the job exit rate. But even with a rich set of regressors the question remains whether there are unobservable worker's characteristics that affect both net wealth and the job exit rate. We specify a simultaneous equations model for job exit transitions with multiple destinations, net wealth, and the initial labour market state. The job exit rates and the net wealth equation contain random effects. We allow for correlation between the random effects of job exit and net wealth, and the initial labour market state.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 3386

Classification
Wirtschaft
Retirement; Retirement Policies
Subject
Retirement
life cycle models
saving
Reichtum
Altersgrenze
Sparen
Privater Haushalt
Lebenszyklus
Mehrebenenanalyse (Statistik)
Niederlande

Event
Geistige Schöpfung
(who)
Bloemen, Hans G.
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2008

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bloemen, Hans G.
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2008

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