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Retirement of the self-employed in the Netherlands

Author

Listed:
  • Amparo Nagore García

    (University of Valencia)

  • Mariacristina Rossi

    (School of Management and Economics, University of Turin and CeRP-CCA)

  • Arthur Soest

    (Tilburg University and Netspar)

Abstract

We investigate retirement decisions of the self-employed in the Netherlands using administrative data focusing on individuals around 65, the state pension age, after which each Dutch resident receives the Old Age State Pension annuity. Since the eligibility age and the magnitude of this state pension are known well in advance, we expect to find no impact on labor supply choices, unless individuals face liquidity constraints. We investigate whether this is the case, by looking at retirement and changes in earnings of the self-employed around age 65. We find a peak in retirement when self-employed reach the state pension age, which is unlikely to be due to liquidity constraints but might be explained by behavioral features.

Suggested Citation

  • Amparo Nagore García & Mariacristina Rossi & Arthur Soest, 2021. "Retirement of the self-employed in the Netherlands," Small Business Economics, Springer, vol. 56(1), pages 385-402, January.
    • Handle: RePEc:kap:sbusec:v:56:y:2021:i:1:d:10.1007_s11187-019-00179-0
    DOI: 10.1007/s11187-019-00179-0
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    References listed on IDEAS

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    Cited by:

    1. Jim Been & Anne C. Gielen & Marike Knoef & Gloria Moroni, 2022. "Prolonged worklife among grandfathers: Spillover effects on grandchildren's educational outcomes," Tinbergen Institute Discussion Papers 22-033/V, Tinbergen Institute.
    2. Nagore García, Amparo & van Soest, Arthur, 2022. "Joint retirement behaviour and pension reform in the Netherlands," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).

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    More about this item

    Keywords

    Life cycle model; Reference point; Social norm;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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