Labour force transitions and changes in quality of life at age 50–55 years: evidence from a birth cohort study

Abstract

In the context of an ageing population and longer working lives, the impact of increasing rates of early exit from the labour force on quality of life is a particularly current concern. However, relatively little is known about the impact on quality of life of later-life labour force transitions and various forms of early exit from the labour force, compared to remaining in employment. This paper examines lifecourse labour force trajectories and transitions in relation to change in quality of life prior to the State Pension Age. Lifecourse data on early life circumstances, labour force trajectories and labour force transitions from 3,894 women and 3,528 men in the National Child Development Study (1958 British Birth Cohort) were examined in relation to change in quality of life, measured by a short-form version of CASP, between the ages of 50 and 55. Women and men differed in the types of labour force transition associated with positive change in quality of life, with men more frequent beneficiaries. For both men and women, labour force exit due to being sick or disabled was associated with a negative change in quality of life, whereas joining the labour force was associated with a positive change in quality of life. Moving into retirement was associated with a positive change in men's quality of life, but not women's. Moving from full-time to part-time employment was associated with a positive change in women's quality of life but not men's. The findings that stand out for their policy relevance are: the threat to the quality of life of both women and men from early labour force exit due to limiting longstanding illness; and women are less likely to experience beneficial labour force exit in the later years of their working life, but are more likely to benefit from a reduction in working hours.