Job Quality and Employment of Older People in Europe

We study the relationship between job quality and retirement using data from the Survey of Health, Ageing and Retirement in Europe, a longitudinal survey covering individuals aged 50+ in several European countries. Although most previous studies looked at the impact of bad working conditions on retirement intentions, we can use the panel dimension to study actual retirement as well as other pathways out of a job. As indicators for job quality we use three different approaches: overall job satisfaction, over-and undereducation for a particular job as well as effort-reward imbalance, which measures the imbalance between a worker's effort and the rewards he or she receives in turn. The analysis gives some evidence that poor job quality decreases retirement age, in particular for women.