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Age of labour force exit

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Retirement is associated with cessation of work and receipt of a pension. Actual retirement ages are difficult to measure directly without internationally comparable longitudinal data, so international comparisons must rely on indirect measures from cross‐sectional data. Indirect measures regard persons above a specified age as "retired" if they are not in the labour force at the time of the survey (average age at labour force exit). Net movements into retirement are proxied by the changes over time in the proportion of the older population not in the labour force. This indirect measure is used in ongoing OECD reviews of older workers. It measures the average effective age of retirement. The official age of retirement is also complex to pin down, especially when retirement is based on fixed years of pension contribution. For more discussion, see OECD (2007).

Document Type: Review Article

Publication date: May 1, 2009


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