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Anderson Flexible Today, Secure Tomorrow? Hinrichs Bibliography Index Control code pc Extent p. Form of item electronic Isbn Isbn Type : Other physical details 9 figures, 6 graphs, 28 12 charts. Library Locations Map Details. Allalra Library Borrow it.

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Include data citation:. Copy to clipboard Close. Cite Data - Experimental. Data Citation of the Item Labour market flexibility and pension reforms : Flexible today, secure tomorrow? Structured data from the Bibframe namespace is licensed under the Creative Commons Attribution 4. Additional terms may apply to data associated with third party namespaces. Link Analysis Experimental.

Network Analysis Inbound Links 1 1 Total. Shared in Network This resource is rare in the Library. Link network. Currently shared across 0 libraries and 0 members of Appalachian College Association. Copy Libraries. Pension systems seem maladaptive to more flexible careers and rising atypical employment, which are both more common among women Hinrichs and Jessoula The longest careers among women can be found in the Nordic countries Lyberaki et al.

In the present study, Denmark and Sweden are compared using the notion of the most similar case design.

Flexible Today, Secure Tomorrow?

Both Scandinavian countries fall into the same category regarding gendered labour markets Sainsbury and welfare regimes Esping-Andersen They have their roots in the Beveridgean public pension system, yet differ in the undertaken reforms. By linking previous career experiences to retirement timing, a bridge between gender inequality throughout the life course and gender differences in retirement timing in a specific institutional context is constructed.

Potential outcomes for the life after retirement are discussed in the conclusion.

Throughout the last decades, retirement timing and its context changed markedly. In times of high unemployment, older workers were frequently pushed into early retirement to rejuvenate the workforce Buchholz et al. That is, the recent aim of maintaining older workers in employment has prompted the closing of early retirement pathways. But, after various reforms, early retirement is now associated with comparatively high pension income losses. Thus, public pension systems are currently less protective regarding income inequalities and employment risks in old age, than they once were Fig.

Looking at employment rates of to year-old workers by gender, the increase after the turn of the millennium is visible in both countries. A persistent gender gap in employment rates can be detected, especially in Denmark. The formula for pension benefits is often constructed on typical lifelong fulltime careers.

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However, atypical employment, career interruptions and phases of unemployment or part-time work are increasing and common among women. Several studies related family aspects and career interruptions to retirement timing. However, the direction of this relationship is not consistent. One reason for this inconsistency may be the role of pension income. While some features of the employment history e.

Therefore, two different notions have been postulated and will be described in the next sections. Some studies found affirmation of this viewpoint whereby women with more stable and longer labour market participation and fewer or shorter interruptions Pienta et al. This is explained by higher work orientation and more rewarding careers Finch Marital status and children are often used as a proxy for lower labour market attachment.

A study by Hank and Korbmacher found a higher likelihood for mothers and married women to retire early compared to their childless or unmarried counterparts. Comparing fathers to childless men, on the other hand, this relation is the reverse. This finding is interpreted with a weaker labour market attachment for mothers and with higher breadwinner responsibilities for fathers. Following the status maintenance hypothesis, low labour market attachment among women leads to earlier labour market exits.

Contrary to the status maintenance hypothesis, an economical argumentation can be found in the literature. It is argued that certain career characteristics—often reflecting family responsibilities—lead to later retirement ages since preferred work positions and status may be achieved later Raymo et al. Career interruptions Raymo et al. These considerations may increase the risk of necessity-driven late retirement. However, evidence for this hypothesis regarding retirement timing is scarce. A Swiss study found a link between later retirement and family responsibilities, long-term interruptions and part-time periods Madero-Cabib et al.

The study by Finch from the UK found that the duration of employment in combination with working part-time affects extending working lives. In this study, even men were more likely to prolong their work life if they had been working part-time.

Types of labour market flexibility

Following the compensation hypothesis, low labour market attachment leads to later exits, especially among women. Different pension systems have the potential to counteract accumulated losses. In the following section, the most important features and changes of the pension systems shall be discussed with regard to their relevance for the compensation hypothesis.

However, they differ in several aspects related to replacement rates, basic pensions, early retirement options and actuarial concepts. All in all, the Danish pension system is more protective towards lower lifetime earnings and early retirement compared to Sweden. In Denmark, replacement rates for low-income workers are comparatively high. Hence, the public pension has a strong redistributive element. This is less the case in Sweden where replacement rates are more similar across the income distribution OECD Both countries provide basic pensions which are comparable with regard to the total amount.

Hence, early retirement in Sweden is financially difficult when relying on the basic pension.

Labour Market Flexibility and Pension Reforms

Following this notion, the generosity of the Danish basic pensions may prevent women from compensating lower career attachment. In Sweden, disability pensions are a major pathway to early retirement, especially for lower-educated workers and women. However, throughout the reforms, eligibility for this kind of pension was restricted. The so-called Until , disability pensions could still be granted on a combination of medical and labour market grounds. Afterwards, labour market reasons were abolished and medical reasons became stricter Hamblin Hence, workers who could still leave early with this kind of pension until the late s have to remain longer at their jobs or accept more severe pension cuts after reforms.

Concurrently, occupational pensions gained importance which may pose a threat to low-income workers. Hence, occupational and private pensions obtained greater importance. This strong drop cannot be observed in many other countries, including Denmark where replacement rates dropped only about 6 percentage points from A report on the reformed pension systems in Europe Natali and Stamati argues that career interruptions due to childcare and shorter unemployment periods up to three years are comparatively well protected in Sweden.

Pension entitlements in Sweden are also linked to sickness, unemployment or parental benefits Anxo et al. However, the reforms changed the calculation of pension benefits in the new system, starting in Hence, incentives are given for retiring later and interrupted careers are penalized. Pension losses due to part-time work are relatively small in Denmark but higher in Sweden Lanninger and Sundstroem Looking at old age poverty risk rates in nine European countries, the study by Ebbinghaus and Neugschwender finds the largest gender differences in Sweden, where the risk is twice as high for women.

Therefore, I expect the compensation hypothesis to play a role for Swedish women, especially regarding part-time work.

The compensation hypothesis is less relevant in Denmark compared to Sweden. The changes in the pension system may increase the financial need to continue working. Hence, among retirees who are affected by these changes, the compensation hypothesis may be more relevant. All in all, this situation should be more severe in Sweden, where the reforms were more drastic compared to Denmark. The compensation hypothesis is more relevant for later cohorts, especially in Sweden.

It included life history interviews with detailed information on job histories Antonova et al. To investigate the timing of retirement, survival analysis is needed to account for right-censoring of events.