Working Conditions and Retirement Preferences: The Role of Health and Subjective Age as Mediating Variables in the Association of Poor Job Quality with Early Retirement

Abstract

AbstractThis chapter presents a theoretical model that links working conditions with men’s and women’s retirement preferences via their physical and psychological health and their subjective age and longevity expectations. The model is based on the assumption that ‘subjective age’ is a central variable in retirement decisions that mediates the relationship between working conditions and individuals’ preferred retirement timing. The theoretical model is tested using survey data from a representative sample of older workers in Austria. Based on findings from multivariate regression analyses, we conclude that improved working conditions – directly and via improved health and feelings of youthfulness – can help delaying the timing of labour market exit. Improvements in working conditions would help to extend working life, because workers who enjoy ‘good working conditions’ tend to feel healthier and younger and would be willing to work until a higher age. Job attributes that help workers to maintain a sense of youthfulness and encourage them to stay part of the active work force until a higher age include high intrinsic job quality (e.g. learning and development opportunities at work, task variety) and employee-led time flexibility. Older workers in ‘bad jobs’ that involve physical work strain and time pressure tend to feel older and to prefer an earlier retirement.