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Language-Group Differences in Very Early Retirement in Finland

Author

Listed:
  • Saarela, Jan

    (Åbo Akademi University, Department of Social Sciences)

  • Finnäs, Fjalar

Abstract

The purpose of this paper is to study very early retirement as an indicator for bad health, with focus on a comparison between the two language groups in Finland. Extensive longitudinal data are analysed with the help of random effects probit models. As expected from previous studies of mortality differences, the rate of retirement is lower among Swedish-speakers than among Finnish-speakers, and this cannot be attributed to socio-demographic and regional factors. Swedish-speaking males have a risk of very early retirement that is about 25 per cent lower than that of Finnish-speaking males. Among females the corresponding difference is about 15 per cent. Our results also suggest that not accounting for unobserved individual heterogeneity will bias the effect of native language downwards.

Suggested Citation

  • Saarela, Jan & Finnäs, Fjalar, 2002. "Language-Group Differences in Very Early Retirement in Finland," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-3, International Conferences on Panel Data.
    • Handle: RePEc:cpd:pd2002:a2-3
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    File URL: http://econpapers.repec.org/cpd/2002/13_Saarela.pdf
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    References listed on IDEAS

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    3. S. J. Drinkwater & N. C. O'Leary, 1997. "Unemployment in Wales: Does Language Matter?," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 583-591.
    4. Fredriksson, Peter, 1999. "The Dynamics of Regional Labor Markets and Active Labor Market Policy: Swedish Evidence," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 623-648, October.
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    Cited by:

    1. Jan Saarela & Fjalar Finnäs, 2004. "Interethnic Wage Variation in the Helsinki Area," Finnish Economic Papers, Finnish Economic Association, vol. 17(1), pages 35-48, Spring.
    2. Saarela, Jan & Stanfors, Maria & Rostila, Mikael, 2019. "In sickness or in health? Register-based evidence on partners' mutual receipt of sickness allowance and disability pension," Social Science & Medicine, Elsevier, vol. 240(C).

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    More about this item

    Keywords

    native language; early retirement; health; unobserved heterogeneity;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • I10 - Health, Education, and Welfare - - Health - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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