The Recent Rise of Labor Force Participation of Older Workers in Sweden
This paper studies the background to the increase in labor force participation of older workers in Sweden since 2000. In the first part, we study how the characteristics of the elderly have changed with respect to health, education level and work environment, as well as the impact of joint decision-making within the household. In the second part, we study the importance of institutional changes, including a major reform of the old-age pension system, introduction of tax credits for older workers, changes of the mandatory retirement age and stricter eligibility criteria in the disability insurance program. We find that the rise in labor force participation has coincided with improvements in health and educational attainment across birth cohorts as well as increased screening stringency in the disability insurance program.
This paper is part of the National Bureau of Economic Research’s International Social Security (ISS) Project, which is supported by the National Institute on Aging (grant P01 AG012810). Lisa Laun gratefully acknowledges financial support from the Swedish Research Council for Health, Working Life and Welfare, FORTE (dnr 2013-0209). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
The Recent Rise of Labor Force Participation of Older Workers in Sweden, Lisa Laun, Mårten Palme. in Social Security Programs and Retirement around the World: Working Longer, Coile, Milligan, and Wise. 2019