Early Retirement of Older Male Workers Under the Dutch Social Security Disability Insurance Programme

  • Leo J. M. Aarts
  • Philip de Jong

Abstract

In the Netherlands, and elsewhere, labour force participation among older workers has been steadily declining during the 1970s and 1980s. Extrapolation of this trend combined with the demographic trend of the greying of the baby-boom generation would predict alarming labour shortages in the future. Fortunately, things are likely to turn out less dramatic than they seem at the moment. Preferences for (early) retirement are likely to be reduced by the market mechanism inducing wages to rise and improving the career prospects for older workers in general. On top of that, adjustments of private and public pension schemes (and also of related schemes such as public disability programmes) may be introduced to restrict pension eligibility and decrease post-retirement income. The market mechanism reinforced by policy measures may, therefore, reverse the downward trend in labour force participation of older workers.

Keywords

Income Stratification Expense Resi OECD 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aarts, L.J.M. and De Jong, P.R. (1992). Economic Aspects of Disability Behaviour. Amsterdam: North-Holland.Google Scholar
  2. Aarts, L.J.M., Burkhauser, R.V. and De Jong, P.R. (1992). The Dutch Disease. Lessons from US Disability Policy Regulation. Google Scholar
  3. Blomsma, M. and De Vroom, B. (1988). Vervroegd Uittreden uit Betaalde Arbeid. The Hague: HRWB.Google Scholar
  4. Bolhuis, E.A., Ottens, S.J. and Steenbeek-Vervoort, M.A. (1987). De VUT met Pensioen. Economisch Statistische Berichten, Vol. 72, pp. 726–7.Google Scholar
  5. Centraal Bureau voor de Statistiek B (Various years 1980–6). Statistisch Zakboek. Voorburg: CBS.Google Scholar
  6. Centraal Planbureau (1987). Centraal Economisch Plan 1987. The Hague: CPB.Google Scholar
  7. Copeland, L.S. (1981). International Trends in Disability Program Growth. Social Security Bulletin, Vol. 44, pp. 25–37.Google Scholar
  8. De Jong, P.R., Herweijer, M. and De Wildt, J.H. (1990). Form and Reform of the Dutch Social Security System. Deventer: Kluwer Law and Taxation Publishers.Google Scholar
  9. Emanuel, H., Halberstadt, V. and Petersen, C. (1984). Disability Policy in the Netherlands. In Haveman, R.H., Halberstadt, V. and Burkhauser, R.V. (eds), Public Policy Toward Disabled Workers. Ithaca, NY: Cornell University Press.Google Scholar
  10. Fields, G.S. and Mitchell, O.S. (1984). Retirement, Pensions, and Social Security. Cambridge, Mass.: MIT Press.Google Scholar
  11. Gemeenschappelijke Medische Dienst (Various years 1980–8). Statistische Informatie. GMD Annual Report, part 2, Amsterdam.Google Scholar
  12. Groothoff, J.W. (1986). Gezondheidstoestand van de beroepsbevolking; Een Studie naar de Indicatoren Arbeidsongeschiktheid, Sterfte, Gezondheidszorg, Doctoral thesis, Groningen University.Google Scholar
  13. Haveman, R.H. and Wolfe, B.L. (1984a). Disability Transfers and Early Retirement: A Causal Relationship? Journal of Public Economics, Vol. 23, pp. 47–66.CrossRefGoogle Scholar
  14. Haveman, R.H. and Wolfe, B.L. (1984b). The Decline in Male Labor Force Participation; Comment. Journal of Political Economy, Vol. 92, pp. 532–41.CrossRefGoogle Scholar
  15. Haveman, R.H., Halberstadt, V. and Burkhauser, R.V. (eds), Public Policy toward Disabled Workers. Ithaca NY: Cornell University Press.Google Scholar
  16. Hurd, M.D. (1990). Research on the Elderly; Economic Status, Retirement, and Consumption and Saving. Journal of Economic Literature, Vol. 28, pp. 565–637.Google Scholar
  17. Ministerie van Sociale Zaken en Werkgelegenheid (1987). Rapportage Arbeidsmarkt 1987. The Hague: SoZaWe.Google Scholar
  18. OECD (1988). Reforming Public Pensions. Social Policy Studies No. 5. Paris: OECD.Google Scholar
  19. OECD, Department of Economics and Statistics (1989). Labour Force Statistics 1967–1987. Paris: OECD.Google Scholar
  20. Parsons, D.O. (1980). The Decline in Male Labour Force Participation. Journal of Political Economy, Vol. 88, pp. 117–34.CrossRefGoogle Scholar
  21. Prins, R. (1990). Sickness Absence in Belgium, Germany (FR) and the Netherlands. Amsterdam: NIA. Doctoral thesis.Google Scholar
  22. Tweede Kamer der Staten-Generaal A (1987). Financiële Nota Sociale Zekerheid. Vergaderjaar 1987–1988, 20206, nr. 1. The Hague.Google Scholar
  23. Wetenschappelijke Raad voor het Regeringsbeleid (1990). Een werkend perspectief; Arbeidsparticipatie in de jaren ’90, Den Haag: SDU-uitgeverij, 1990.Google Scholar
  24. Wolfe, B.L., De Jong, P.R., Haveman, R.H., Halberstadt, V. and Goudswaard, K.P. (1984). Income Transfers and Work Effort; The Netherlands and the United States in the 1970s. Kyklos, Vol. 37, pp. 609–37.CrossRefGoogle Scholar

Copyright information

© A. B. Atkinson and Martin Rein 1993

Authors and Affiliations

  • Leo J. M. Aarts
  • Philip de Jong

There are no affiliations available

Personalised recommendations