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dc.contributor.authorMerkurieva, Irina
dc.identifier.citationMerkurieva , I 2019 , ' Late career job loss and the decision to retire ' , International Economic Review , vol. 60 , no. 1 , pp. 259-282 .
dc.identifier.otherPURE: 252871805
dc.identifier.otherPURE UUID: cb3bf53e-0e01-43c2-b798-49fce4808050
dc.identifier.otherScopus: 85054885364
dc.identifier.otherORCID: /0000-0003-2240-0489/work/59464907
dc.identifier.otherWOS: 000458822300011
dc.description.abstractThis article provides an empirical analysis of the effect of involuntary job loss on the lifetime income and labor supply of older workers. I develop and estimate a dynamic programming model of retirement with savings, costly job search and exogenous layoffs. The average cost of job loss is equivalent to one year of pre-displacement earnings, 70% due to the wage reduction and 30% to the search frictions. Displaced workers on average retire fourteen months earlier. Workers who approached retirement during the Great Recession will work approximately five months longer in response to the contemporaneous financial and labor market shocks.
dc.relation.ispartofInternational Economic Reviewen
dc.rightsCopyright © 2018 by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at
dc.subjectLife-cycle labor supplyen
dc.subjectLayoff costen
dc.subjectCyclical unemploymenten
dc.subjectHD28 Management. Industrial Managementen
dc.titleLate career job loss and the decision to retireen
dc.typeJournal articleen
dc.contributor.institutionUniversity of St Andrews.School of Economics and Financeen
dc.description.statusPeer revieweden

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