Early Withdrawal from the Labor Force

Abstract

Not-yet-old men whose health is not failing are retiring from the labor market at a time when they do not receive any pension income and the level of their nonwage income is very low. This study examines why such men stop working as early as they do, instead of continuing to work at least until they are old enough to claim social security benefits (to which they are entitled at age 62). It finds that labor market conditions that result in diminished employment opportunities cannot be ruled out as conducive to withdrawal from the labor market before age 62.

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