Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2023:15: Joining late, leaving early? Immigrant-native disparities in labor market exit

Olof Åslund (), Fredrik Larsson and Lisa Laun ()
Additional contact information
Olof Åslund: Uppsala University, Department of Economics, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden
Fredrik Larsson: Swedish Public Employment Agency, Postal: Swedish Public Employment Agency
Lisa Laun: Uppsala Center for Labor Studies (UCLS), Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden

Abstract: Theory and empirical findings on retirement determinants suggest that we may expect differences in labor market exit between native and foreign-born workers. Despite many countries seeing rising immigrant shares in their aging populations, alongside significant labor market disparities, the issue has so far received limited attention. Population-wide administrative data for Sweden show that the hazard rate to retirement is greater among immigrants already from age 50. But approaching age 65, especially marginal migrant groups have a stronger tendency to remain in the labor force and thus not adhering to the norm of retiring at a specific age. Education and family situation explain little of the retirement gaps, whereas labor market history, health, and occupational allocations are important determinants. Immigrant-native retirement differences are greater among men than among women. Overall findings suggest economic necessity and/or opportunity rather than varying preferences as drivers of differentials.

Keywords: labor market exit; immigrants; retirement hazard

JEL-codes: C93; J64; J68

Language: English

45 pages, June 12, 2023

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