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Health, Work Capacity, and Retirement in Sweden

Per Johansson, Lisa Laun, Mårten Palme

Chapter in NBER book Social Security Programs and Retirement around the World: The Capacity to Work at Older Ages (2017), David A. Wise, editor (p. 301 - 327)
Published in May 2017 by University of Chicago Press
© 2017 by the National Bureau of Economic Research
in NBER Book Series - International Social Security

Following an era of a development towards earlier retirement, there has been a reversed trend to later exit from the labor market in Sweden since the late 1990s. We investigate whether or not there are potentials, with respect to health and work capacity of the population, for extending this trend further. We use two different methods. First, the Milligan and Wise (2012) method, which calculates how much people would participate in the labor force at a constant mortality rate. Second, the Cutler et al. (2012) method, which asks how much people would participate in the labor force if they would work as much as the age group 50-54 at a particular level of health. We also provide evidence on the development of self-assessed health and health inequality in the Swedish population.

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This chapter first appeared as NBER working paper w21969, Health, Work Capacity and Retirement in Sweden, Per Johansson, Lisa Laun, Mårten Palme
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