Labour Law, Social Norms and the Early Retirement Decision: An Empirical Study

Abstract

The study examines the influence of values, social norms and labour law and social security institutions on the decision to exit the labour market and to give up job security and even some income by labour law and social security regulations appear to differ by gender but not by education or skill level. Social norms have a substantial effect which is however shown to be different for men and women in some instances and more important for the early retirement decision of the high skilled worker than the low-skilled worker, whereas some commonly shared values in society such as a high work ethos exerts a stronger effect on the low skilled workers' retirement decision.

Individual agency and structure perceptions in intentions to withdrawal from work early/late in the mid-and late-career

“…Also, the possibility of a high and guaranteed pension for many years of retirement might motivate midand late-career workers to leave the workforce before mandatory ages . As Skugor et al (2012) stated, monetary incentives associated with pension systems, generous benefit and welfare arrangements are related to leaving employment. However, the continued rise in life expectancy and the amount of years between early retirement and death might suppose in the long run a higher likelihood for mid-and late-career workers of being in financial hardship.…”

“…On the other hand, predominant work-related social and cultural norms can have relevant effects on workers' early retirement intentions and decisions (Jansen, 2018). In societies with extrinsic work norms where extrinsic job features like good and stable pay and job security are strongly valued, mid-and late-career workers are less likely to leave work and retire early (Skugor et al, 2012). In sum, the combined pull effects of financial incentives, generosity of benefits and pension schemes, and social and cultural norms will make early retirement more attractive to mid-and late-career workers.…”