An econometric analysis of the transition to retirement in Europe: results from SHARE data

Abstract

Pensions and, in general, social security are one of the most significant expenditure items of the government budget, especially in Europe. The constant ageing process and the decreasing fertility rate in developed countries in the recent years urge policy makers to implement strategies to avoid an explosive rise of government spending. Policies, in turn, may influence individuals' decisions about consumption, saving but also their choice about retirement. The aim of this research is to find which factors are significant for the transition to retirement, and how they differ across European countries, namely in Western Europe. The study uses data from the 5th and 6th Wave of the SHARE survey. The work will develop an econometric analysis of the transition between labor force and retirement.