Determinants of labour market exit of older workers in the Slovak Republic
The Slovak population is set to age rapidly in the next decades, with significant
impacts on economic growth and the sustainability of public finances. At the same
time, the labour market exit age in Slovakia is among the lowest in the OECD. We use
administrative data for Slovakia between 2013 and 2020 to analyse what factors influence
the probability of employment exit of older workers. We find that statutory retirement
ages have an important influence on the decision to leave employment. Higher educational
attainment is associated with later employment exit, suggesting that the employment
rate of older workers is likely to increase in the future as younger generations have
higher educational attainment. We also find evidence that workers in sectors that
are physically more demanding are exiting employment earlier. Impaired health also
leads to significantly earlier employment exits. Finally living in a rural area or
in areas with high unemployment is associated with earlier exit from the labour market.
Published on February 15, 2022
In series:OECD Economics Department Working Papersview more titles