Joining late, leaving early? Immigrant-native disparities in labor market exit

Abstract

The retirement behavior of immigrants has received limited attention, despite many countries seeing rising immigrant shares in their aging populations. Population-wide data for Sweden reveals that the retirement hazard rate is higher among immigrants as early as age 50. Approaching age 65, marginal migrant groups are instead more likely to remain in the labor force rather than conform to retirement age norms. While education and family circumstances explain little of these retirement gaps, labor market history, health, and occupation are important determinants. Immigrant-native differences are more pronounced among men than women. Findings suggest that economic necessity or opportunity, rather than varying preferences, are the driving factors behind the observed retirement disparities.