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Trends in Labor Force Participation of Older Workers in Spain

Pilar García-Gómez, Sergi Jimenez-Martin, Judit Vall Castelló

NBER Working Paper No. 24637
Issued in May 2018
NBER Program(s):The Program on Aging

Similar to other OECD countries, labor force participation rates of Spanish older workers were falling until the mid-1990s when there was a reversal in the trend. Labor force participation rates of Spanish men have been increasing since then, although at a slower pace than in other OECD countries. We explore to what extent several factors can be behind these trends. First, we conclude that the (old-age) social security system (except perhaps for the disability component) has played a marginal (at most) role on this reversal given the lack of major changes in social security benefits until the last set of reforms in 2011 and 2013. Second, we also rule out that changes in the health status of the population are responsible for the reversal of this trend. Finally, we find that aggregate economic conditions, and differences across cohorts in both the skill composition and the labor force attachment of wives are potential drivers of these observed changes.

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Document Object Identifier (DOI): 10.3386/w24637

Forthcoming: Trends in Labor Force Participation of Older Workers in Spain, Pilar García-Gómez, Sergi Jimenez-Martin, Judit Vall Castelló. in Social Security Programs and Retirement around the World: Working Longer, Coile, Milligan, and Wise. 2019

 
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