The Effect of Job Mobility on Retirement Timing by Education – Centre for Retirement Research


Job-changing among late-career workers increased steadily from the 1980s through the mid-2000s before declining somewhat in recent years.  This study asks how the rise in job-changing – which seems largely voluntary – affects retirement timing and whether this effect varies by a key measure of socioeconomic status: educational attainment.  Workers presumably change jobs voluntarily to improve their well-being through gains in the economic or non-economic rewards of work or better working conditions.  As a result, workers switching jobs late in their careers might retire later than they otherwise would have.  Retiring later would be especially beneficial to less educated workers, who are generally less prepared financially to retire than better educated workers.  Changing jobs, however, sheds the protection that tenure provides against involuntary job loss, which often leads to earlier retirements for older workers.  This study seeks to understand which effect dominates, while dealing with the fact that job changing could be endogenous to retirement – that workers willing to bear the cost of a job search could intend to remain in the workforce longer.  The analysis does so by controlling for each individual’s planned retirement age.  The results show that the benefits of job changing are widely distributed and are associated with later retirements for men and women and for better and less educated workers.

SOURCE: Sanzenbacher, Geoffrey T.; Sass, Steven A. and Gillis, Christopher M. “The Effect of Job Mobility on Retirement Timing by Education.”  Centre for Retirement Research, February 2017, CRRWP#2017-1

Link to website

BroCAP is produced by the two librarians at the Brotherhood of St Laurence in Melbourne, Australia. If you find our service useful and would like to contribute to ‘Working for an Australia Free of Poverty’, please consider a donation using the link below.

Comments are closed.

Subscribe to our Newsletter

Select list(s):

Follow BroCAP on Twitter

Click on a date to search archive

March 2017
« Feb    


Posts are for information purposes and do not constitute endorsement by the Brotherhood of St Laurence