The role of institutions and health in European patterns of work and retirement

Abstract

This article uses the Survey of Health, Ageing and Retirement in Europe (SHARE) to investigate the role of pension and social security institutions in shaping the European patterns of work and retirement. The key novelty of our article is a careful account of the health status of the respondents. We provide new evidence on the extent of health-adjusted ‘unused capacity’ in the labour force, on the institutional determinants of the pathways to retirement, and on the relationship between actual health status and disability-benefit recipiency. We find that institutional differences between countries explain much of the cross-national differences in work and retirement, while differences in health and demographics play only a minor role.