Early Retired or Long-Term Unemployed?

Abstract

The paper examines the appropriateness of the epithet `a growth of early retirement' to describe the falling labour force participation of older men in Britain since the end of the 1970s. It refers to statistical explanations of age specific labour force participation and draws extensively on Labour Force Survey data to describe the subjective and objective characteristics of those aged 55-64 who are not in paid employment. Whilst there is evidence that much of the fall in activity rates can be ascribed to a deterioration of the labour market, it is inappropriate to consider those who have left the labour market simply as `unemployed'. Their indeterminate status - between active and inactive - is argued to be akin to that of the long-term unemployed.