While politicians discuss how e.g. financial incentives can get seniors to stay longer on the labour market, new research from Aarhus School of Business, Aarhus University shows that the seniors themselves prioritise health over finances when they plan their retirement. With the right effort, some groups can extend their time on the labour market up to several years.
These days, there is a great debate on e.g. the early retirement pension and on how we in Denmark are to handle the increasing number of elderly people and the economic challenges that result from it. One of the strongly considered options is to offer financial incentives to the seniors who choose to stay a couple of years longer on the labour market.
But now, new research from Aarhus School of Business, Aarhus University shows that both men and women prioritise their health over their finances when they decide on when they want to retire.
Broader thinking
This is not to say that a financial bonus for people who stay longer on the labour market does not have an effect, but according to Nabanita Datta Gupta from Aarhus School of Business, Aarhus University, who, together with senior researcher Mona Larsen from the Danish National Centre for Social Research, has conducted the research, politicians and employers can, besides financial profit, get professionals to diagnose the employees? health problems. Sometimes seniors pretend to be doctors themselves.
- When Danish men and women decide to retire, sometimes they use self-diagnosed disabilities as rationale for their decision. Therefore, there is a risk that the diffuse and non-identifiable symptoms are made far more serious than they actually are. It also helps the employees to know that they are not as sick as they thought they were, says Nabanita Datta Gupta.
She stresses that this does not mean that employers should doubt employees who say that they have some problems. But with knowledge on which disabilities can be examined more carefully, people can stay longer on the labour market.
Up to two additional years of employment
Depending on people?s disabilities, there might be years of additional labour force available if an actual diagnose is made. Research results show that the influence on the planned retirement age varies a great deal depending on whether the physical problems are self-reported or diagnosed.
- With e.g. osteoarthritis, back pain and muscle and joint pain, there is between one and a half and two years of difference regarding people?s retirement age. Although it might seem strange that people, who are diagnosed when admitted to the hospital, stay longer at the job, it can be due to the fact that self-reported disabilities often seem worse than they actually are. This can have something to do with insecurity due to lack of diagnosis, says Nabanita Datta Gupta.
Facts about the study:
The study is based on data from the Ćldredatabasen: personal and telephone interviews with about 3000 Danes born in 1940 to 1945, who were interviewed in 1997 and again in 2002. These data have been linked to extensive register data on diagnoses in connection with hospital admissions from Sygehusbenyttelsesregisteret.
The article will be published in Health Economics in July 2010.
For more information:
Professor Nabanita Datta Gupta?
Department of Economics
Aarhus School of Business, Aarhus University
Tel.: 89 48 69 66?
Mobile: 21 24 40 86.?
Email:
ndg@asb.dkWebAndreas G. Jensby