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Retirement expectations—measured either as expected retirement age or the subjective probability of working until a particular age—are widely available in longitudinal studies. This chapter evaluates the performance of these measures. It finds that they are excellent predictors of retirement, though their relation with realized retirement is substantially attenuated. A wide range of variables relevant for retirement have little incremental predictive once attenuation-adjusted subjective probabilities are taken into account. Because of their wide availability and high reliability, retirement expectations are widely used for analyzing late-in-life labor supply decisions and effects of retirement.

Author
Gábor Kézdi; Matthew D. Shapiro
Publisher
Academic Press, an imprint of Elsevier
Published
2023
Language
EN
ISBN
9780128229279

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